Through a new portal that the Central Bank of Kenya (CBK) has launched, Kenyans will be able to trade in Treasury Bills and Government Bonds via a mobile application.
The CBK declared that the removal of manual payments for bonds and T-bills is one of the modifications made possible by the new platform. Commercial banks will be used for all payments.
“The CBK DhowCSD is a new Central Securities Depository (CSD) that offers a simple, efficient, and secure portal by the Central Bank of Kenya (CBK) to enable the public to invest in Government of Kenya securities.
Here is an easy-to-follow guide for using the DhowCSD platform to invest in Treasury Bills and Bonds:
- Visit the DhowCSD web portal at http://dhowcsd.centralbank.go.ke/or download the DhowCSD mobile app.
- Click “Create Account” to start the registration process if you’re a new user.
- To activate your online account, select “Already have a CSD account” if you already have an account. The new DhowCSD system will smoothly import all of your current information.
- Choose a username, enter your email address, and set up a strong password.
- Accept the Terms of Service to continue.
- For your CSD account, click “Start registration” to begin the formal registration process.
- Enter your personal information exactly as it appears on your official ID (passport/I.D.).
- For an individual account, select “Physical Person” under USER TYPE and “Household” under ECONOMIC SECTOR.
- To make your transactions easier, select the ideal broker.
- Your main registered phone number and any further information have to be entered.
- Include your KRA PIN certificate and any necessary tax exemption certificates, if applicable. Be aware that while certain organizations, including NGOs, may be exempt from paying taxes, individuals are typically not.
- Enter the verification code that was provided to your registered email address to confirm your email address.
- Within seven days, complete the registration process since incomplete profiles will be erased by the system.
- You can begin investing as soon as your account has been approved. The approval procedure normally takes 1-2 days, which is a substantial improvement over the prior turnaround time of one month.
- To place a bid on the Treasury Bills and Bonds of your choice, click the BUY/SELL button.
- Choose between “competitive bidding” and “noncompetitive bidding” when submitting a bid. An investor who specifies the prices or yields at which they desire to purchase securities has made a competitive offer. In a competitive bidding process, offers will be approved in the order that the price or yield exceeds the minimum acceptable price or maximum acceptable yield established by the Central Bank of Kenya. When using non-competitive bidding, you can choose the quantities you want to purchase, but the price or yield is set by the highest competitive bids that are approved during the auction.
An investment that enables the government to borrow from the domestic market is a government-issued bond. The CBK raises funds on behalf of the Kenyan government, which utilizes them to finance a variety of initiatives like constructing roads, hospitals, and offering public services.