The Central Bank of Kenya (CBK) has significantly streamlined the investment process for government securities by integrating the M-Pesa mobile payment platform into its digital system, DhowCSD. This new feature allows investors to complete payments for successful bids directly from their mobile phones.
CBK’s announcement, made on Friday, November 21, confirms that payments of up to Ksh. 250,000 for government securities can now be executed via M-Pesa. This convenient option is accessible through the “Transactions” tab on both the DhowCSD mobile application and its online portal.
While M-Pesa is the exclusive mobile payment option at launch, the Central Bank indicated that it plans to introduce additional mobile payment methods in the future to further enhance investor accessibility.
The new payment functionality is the latest enhancement to the DhowCSD system, a comprehensive digital platform launched in 2023. The platform’s core mission is to empower retail investors, both within Kenya and abroad, to easily buy, sell, and manage their holdings in government securities.
Through the DhowCSD system, investors can:
- Participate in auctions for Treasury bills and Treasury bonds.
- View auction results and track payment instructions.
- Monitor upcoming corporate actions.
- Access and manage their portfolio statements.
- Place secondary market and pledge instructions.
Before investing, individuals must register for a DhowCSD account, a process designed for ease of access but requiring certain verification details:
| Requirement Category | Required Details |
| Connectivity | Valid email address, a mobile device (phone or computer), and an active Kenyan mobile network operator number. |
| Identification | Kenya Revenue Authority (KRA) PIN, settlement bank details, a clear passport-size photo, and a copy of a national ID, passport, or alien card. |
| Additional | A tax exemption certificate may be included if applicable. |
CBK requires that the registration process be completed within seven days. Incomplete profiles are automatically deleted by the system. Upon approval, which typically takes two to three days, the investor receives an assigned username for all future logins.
Once approved, investors can log in to the DhowCSD portal or the mobile application (available on Google Play Store and Apple App Store) to view available Treasury securities. Bids are placed via the BUY/SELL option, where investors choose between competitive and non-competitive bidding.
Following a successful bid, the new M-Pesa feature simplifies the final settlement, allowing investors to quickly and conveniently complete the purchase of their T-bills or T-bonds up to the Ksh 250,000 limit.
The CBK’s DhowCSD offers a range of investment options:
- Fixed-Coupon Bonds: The most common type, providing a stable, fixed interest rate over the bond’s life, resulting in consistent semi-annual interest payments.
- Infrastructure Bonds: Fixed-coupon bonds specifically dedicated to funding designated national projects. These are highly sought after as their returns are often tax-exempt.
- Savings Development Bonds: Long-dated, fixed-coupon bonds aimed at encouraging savings among the investing public.