The Central Bank of Kenya (CBK) has rolled out a public awareness campaign encouraging Kenyans to leverage their government securities to access credit from commercial banks.

In a statement shared through its DhowCSD platform, the regulator noted that many investors remain unaware that Treasury Bills and Treasury Bonds can serve as collateral, offering an alternative route to financing without liquidating investments.

“Did you know that your Government securities can work for you? You can apply for a loan from your bank using your Treasury Bills and Treasury Bonds as collateral,” CBK stated, highlighting the untapped potential of fixed-income investments in enhancing financial flexibility for individuals and institutions.

The initiative comes at a time when access to affordable credit remains a key concern for businesses and households.

By promoting the use of government securities as collateral, CBK aims to deepen the domestic capital market while encouraging prudent borrowing anchored on low-risk instruments issued by the government.

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Using Government Securities to Access Credit

According to CBK, the process of using Treasury Bills and Bonds as collateral has been simplified through coordination between commercial banks and the DhowCSD system.

The bank emphasized that “Make Your Government Securities Work for You” is not just a slogan but a practical guide on how investors can unlock value from assets they already hold.

Step-by-Step Loan Application Process

Under Step 1, CBK advises investors to “Visit Your Commercial Bank” to confirm eligibility for a loan using government securities as collateral.

This initial engagement allows the bank to assess the investor’s profile and the value of the securities to be pledged.

In Step 2, applicants are required to “Apply for a Loan” by completing the loan application process, submitting any additional documentation required, and providing details of the Treasury Bill or Bond to be pledged.

CBK notes that borrowers must also “Agree on pledge transaction settlement date” as part of the process.

Also Read: CBK Unveils New Financial Inclusion Strategy Frameworks

Pledging Securities Through DhowCSD

The final stage, Step 3, involves providing the security as collateral through the DhowCSD investor portal.

Investors are instructed to “Log in to the DhowCSD investor portal and go to ‘Instructions’ and select ‘Pledge’”, after which they enter the required details and place the instruction.

CBK explains that “Upon approval, funds are disbursed to your account and the bond flagged as pledged,” ensuring transparency and protection of both the lender and the borrower.

However, the regulator cautions that “Loan repayment terms and interest rates will depend on the bank’s terms and conditions.”

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CBK Governor Dr Kamau Thugge during a launch of the NFIS (2025-2028) and the signing of the Women Entrepreneurs Finance Code. PHOTO/ CBK