Finance Minister, Henry Rotich said the government is initially making limited offer of 150 million shillings to test the system before a bigger offer in June.
Central Bank Governor, Patrick Njoroge said the bond, called M-Akiba, allows people to invest as little as 3,000 Kenyan shillings which is about $29.20.
Kenya pioneered the use of mobile money in 2007 with M-Pesa, a money transfer service.
M-Pesa allows users to transfer cash and make payments on even the most basic mobile phone. In partnership with local banks.