Kenya has made it easier for international investors to buy Kenyan government securities. Today, the Central Bank of Kenya (CBK) officially announced a partnership with the financial institution Clearstream.
This partnership creates a financial bridge linking Kenya’s local electronic system, Central Securities Depository (DhowCSD), with Clearstream.
Through this link, foreign institutions can now digitally buy and trade Kenyan government bonds, treasury bills, and infrastructure bonds without the need for local registration.
“Clearstream’s connection to the DhowCSD will provide institutional investors with efficient access to the local market through a unique omnibus account structure, supporting Kenyan government bonds, infrastructure bonds, and treasury bills,” CBK wrote in a notice.
Greater digital integration with the global financial system is expected to attract more foreign capital to Kenya, helping fund public projects such as roads and energy systems.
It also strengthens the stability of Kenya’s domestic debt market.
“The link is expected to deepen liquidity, broaden the investor base, and enhance the resilience of the domestic debt market,” CBK added.
READ: CBK Launches DhowCSD Portal! A New Easy Way To Invest In Government Securities
The Clearstream Group is the central securities depository arm of the Deutsche Börse Group, Germany’s stock exchange operator, and is linked to 60 domestic markets. It provides settlement and custody as well as other related services for securities across all asset classes.
Kenya is only the second nation in Africa, after South Africa, to establish this kind of link with Clearstream, anchoring its position as a leading financial hub on the continent.
