Investing in Kenya’s government bonds just became as easy as sending an M-Pesa.

The CBK’s introduction of mobile money payments on the DhowCSD platform is a game-changer for retail investors.

By removing the friction of traditional banking hurdles, the CBK is not just improving a platform; it is fundamentally transforming how the average Kenyan participates in the securities market, making wealth-building more inclusive than ever before.

The integration of M-Pesa, Kenya’s dominant mobile money platform with over 30 million users, addresses a critical friction point in retail investor participation.

Historically, successful bidders were forced to navigate cumbersome bank transfers and RTGS processes that were often time-consuming and intimidating for first-time investors.

By allowing payments of up to KSh 250,000 directly via mobile, the CBK has replaced these traditional banking hurdles with a familiar, high-speed interface that aligns with the everyday financial habits of Kenyans.

Advantages

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1. Zero Commission and Brokerage Fees: Investors can save on intermediary costs, enhancing their returns.
2. No Annual Maintenance Charges: This makes it a cost-effective investment option.
3. Secondary Market Trading: Investors can buy and sell G-Secs, SDLs, and T-bills in the secondary market through their RBI Retail Direct account.
4. Portfolio Diversification: Government securities offer a stable investment option that can balance riskier assets in an NRI’s portfolio, reducing overall risk.
5. Stable Returns: These securities typically offer predictable returns with minimal risk, making them an attractive option for conservative investors.
6. Hedge Against Currency Fluctuations: Investing in stable Indian government securities can help hedge against currency volatility in the investor’s home country, providing a safeguard against exchange rate risks.
7. Variety of Tenures: With tenures ranging from 91 days to 40 years, NRIs can choose securities that match their investment horizons, whether short-term or long-term.
8. Tax Efficiency: Interest earned on government securities is taxable in India. However, NRIs can take advantage of Double Taxation Avoidance Agreements (DTAs) to optimize their tax liabilities.

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Treasury bonds are secure, medium- to long-term investments that provide reliable interest payments every six months. While the Central Bank of Kenya (CBK) auctions these bonds monthly, the specific types of bonds vary; therefore, investors are encouraged to monitor the auction calendar regularly.

Most Kenyan Treasury bonds feature a fixed-rate coupon, locking in your interest rate for the bond’s duration and ensuring a predictable income stream. For those seeking higher returns, the National Treasury occasionally issues tax-exempt infrastructure bonds, which remain highly sought-after.

Investors, both individuals and corporate bodies, can participate directly through the DhowCSD portal or mobile app.

Alternatively, investments can be managed through Kenyan commercial banks or investment banks acting as custodians.

How to Open a CBK DhowCSD Account via Mobile App or Web Portal

•  You can access the CBK DhowCSD platform via the Web portal https://dhowcsd.centralbank.go.ke/ or download the DhowCSD app on Google Play Store or Apple App Store.
• Please follow the steps provided here: DhowCSD Portal | CBK (centralbank.go.ke) – Opening a CSD Account.
• Decide How You Want to Invest
• Complete and Submit Bids Via the Dhow CSD Mobile App or Web Portal

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Central Bank of Kenya, CBK Governor
Photo/CBK