KENYA:CBK Enables Mobile Payments for Treasury Bills and Bonds Through DhowCSD

The Central Bank of Kenya (CBK) has enabled investors to pay for government securities, such as Treasury bills and bonds, via M-Pesa through its DhowCSD digital platform. Investors can now settle payments of up to KSh 250,000 directly from their mobile phones. The M-Pesa option is available via the “Transactions” tab on both the DhowCSD mobile app and its web portal.

At launch, M-Pesa is the only supported mobile payment method, but CBK plans to introduce additional mobile options in the future. DhowCSD, which was launched in 2023, allows retail investors in Kenya and abroad to bid in auctions, view auction results, manage their portfolio statements, and place secondary market or pledge instructions.

To use the platform, investors must register for a DhowCSD account. The registration process requires a valid email, a Kenyan mobile number, KRA PIN, bank details, a passport-style photo, and a government-issued ID (national ID, passport, or alien card). Registrations must be completed within seven days, and incomplete profiles are automatically deleted. Approved users typically receive their username within two to three days via email.

Once registered, investors can log into the DhowCSD app or the portal to place competitive or non-competitive bids. When a bid succeeds, the new M-Pesa payment function allows them to settle the transaction instantly, provided the amount does not exceed the KSh 250,000 limit.

DhowCSD supports several types of government securities, including fixed-coupon bonds, infrastructure bonds (often tax-exempt), and savings development bonds designed to encourage long-term saving.

SOURCE: AGENCIES