CBK Launches DhowCSD Portal! A New Easy Way To Invest In Government Securities

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The Central Bank of Kenya is officially launching the CBK DhowCSD, a new digital platform that offers a simple efficient and secure way that enables the public and diaspora community to invest in government securities.

CBK DhowCSD incorporates vital services such as the Central Security Depository enabling opening and bidding for government securities. The services are accessible via the CBK DhowCSD website or the DhowCSD Mobile app.

To quote permanent secretary of State Department for Diaspora Affairs Roseline Njogu;

“The Government remains committed to promoting diaspora investments back home by offering attractive investment opportunities,  incentives and establishing financial instruments that facilitate diaspora investments,

How To Sign Up for CBK DhowCSD

  • Go to the CBK website and click on the “investor portal” tab. Optionally you can download the CBK DhowCSD app from the google play store.
  • Complete the sign up process by setting up a secure password for you’re account.
  • Fill out the required information on the sign-up forms.

What Are Government Securities?

Government securities are a range of investment products offered by a governmental body that are used to fund daily operations, and special infrastructure and military projects. They guarantee the full repayment of invested principal at the maturity of the security and often pay periodic coupon.

Understanding Government Securities.

Government securities are debt instruments of a sovereign government. These investments work in much the same way as a corporate debt issue. Corporations issue bonds as a way to gain capital for buying equipment, funding expansion, and paying off other debt. By issuing debt, governments can avoid hiking taxes or cutting other areas of spending in the budget each time they need additional funds for a project. After issuing government securities, individual and institutional investors will buy them to either hold until maturity or sell to other investors. These investments are often risk-free for investors.

What Securities Can I purchase At The DhowCSD?

Investors can purchase T-bills and T-bonds starting August 1st after the official launch of the platform.

Treasury bills (T-Bills)

T-Bills are paperless short-term borrowing instrument issued by the Government through the Central Bank of Kenya (as a fiscal agent) to raise money on short term basis. These short-term government securities pay a higher interest rate return as the maturity terms lengthen. Moreover, they are typically issued in 91, 182 and 360 days maturities. They require a minimum investment amount of Kshs. 100,000.

Treasury bonds ( T-Bonds)

Treasury bonds are a secure, medium- to long-term investment issued by the government for purchase by investors. They typically offer you interest payments every six months throughout the bond’s maturity. The Central Bank auctions Treasury bonds on a monthly basis but offers a variety of bonds throughout the year. Furthermore, most T-bonds in Kenya are fixed rate, meaning that the interest rate determined at auction is locked in for the entire life of the bond. Treasury Bonds require a minimum investment amount of Kshs. 50,000.

Click Here to sign up