The Central Bank of Kenya (CBK) has introduced a new feature on its DhowCSD platform that allows investors to pay for their successful bids on government securities using their mobile phones.
In an update on Friday, November 21, CBK announced that investors can now make payments of up to Ksh250,000 through M-Pesa. The payment process is accessed under the “Transactions” tab within the DhowCSD mobile application or the online portal.
CBK also indicated that the new feature is only currently available via M-Pesa and that additional mobile payment options will be introduced in the future.
This payment update is part of the broader DhowCSD system, launched in 2023, a digital platform that enables retail investors in Kenya and abroad to buy and manage government securities.
Through the system, investors can participate in Treasury Bill and Treasury Bond auctions, view auction results, check payment instructions, monitor upcoming corporate actions, and access their portfolio statements. The platform also provides tools for placing secondary market and pledge instructions.
Requirements for signing up on DhowCSD
To use these services, individuals must first register for a DhowCSD account. Registration requires a valid email address, a mobile phone or computer, and an active, registered mobile number with a Kenyan Mobile Network Operator.
Applicants must also provide their Kenya Revenue Authority (KRA) PIN, settlement bank details, and copies of required documents, including a clear passport-size photo and an identification document such as a national ID, passport, or alien card.
Also Read: CBK Opens Ksh40 Billion Treasury Bond Investment to Kenyans Starting from 50K
A tax exemption certificate may be included when applicable. CBK requires that the registration process be completed within seven days. If this does not happen, the system automatically deletes the incomplete profile.
Once the account has been created, the user receives an email with their assigned username. This username or email will be used for all future logins. Joint accounts can be created, but only after each participant has an active individual profile. Any requests to change an email address or settlement details must be submitted to CBK for processing.
How to invest in Government bonds
After approval, which typically takes two to three days, investors may log in to the DhowCSD portal or app to view the available Treasury Bills and Bonds. They can place bids using the BUY/SELL option on the platform.
Investors may choose between competitive and non-competitive bidding. They may also select from several types of Treasury bonds.
Following a successful bid, investors can now make payments directly through the DhowCSD system using M-Pesa, thanks the the new feature that allows payments of up to Ksh250,000. This offers a simple and convenient way for investors to complete the settlement process using their mobile phones.
Also Read: CBK Invites Investors to Sell Back Ksh 30 Billion Bonds to Govt
CBK DhowCSD offers various Treasury bond types for investment, including fixed-coupon bonds, infrastructure bonds, and savings development bonds.
Fixed coupon bonds are the most common type of T-bonds, with a stable interest rate over the bond’s lifespan, resulting in consistent semi-annual interest payments.
Infrastructure Bonds, on the other hand, are fixed-coupon bonds specifically intended to fund designated infrastructure projects. They often attract significant market interest due to their tax-exempt returns.
Savings development bonds are long-dated, fixed-coupon bonds designed to encourage savings among investors.
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