The Central Bank of Kenya (CBK) is in the final stages of launching a retail bond trading platform that will allow ordinary Kenyans to invest in government securities through their mobile phones, in a major move aimed at democratizing access to the capital markets and deepening financial inclusion.
The long-anticipated platform, which has been in development for several years, will enable individuals to buy and sell government bonds in small denominations, eliminating previous barriers such as high minimum investment amounts and complex procedures.
The CBK Governor, Dr. Kamau Thugge, recently confirmed that the initiative is close to completion, signaling a significant policy shift toward embracing technology and simplifying public participation in treasury bond markets.
The platform, tentatively known as DhowCSD, will operate as a central securities depository and integrate with Kenya’s widely used mobile money systems, including M-Pesa, to facilitate payments and settlement of transactions.
This innovation is expected to lower the minimum investment threshold to as low as Ksh 5,000, compared to the traditional minimum of Ksh 50,000, thus opening up the bond market to low and middle-income earners.
Once operational, the platform will allow Kenyans to directly invest in government debt instruments, track their holdings, receive interest payments, and manage their portfolios using mobile devices.
This development aligns with the CBK’s broader strategy to enhance domestic savings and reduce the government’s reliance on foreign debt. It also seeks to build a savings culture among citizens while offering them safer, regulated investment options compared to high-risk informal schemes.
Industry experts view the move as transformative, potentially boosting national savings rates and enhancing the liquidity and depth of the secondary bond market.
The CBK is currently conducting final system tests and stakeholder consultations, with a public launch expected before the end of the year.
Written By Ian Maleve
