In a groundbreaking move towards modernizing Kenya’s financial landscape, President William Ruto officially inaugurated the Central Securities Depository Dhow (DhowCSD) on Monday. This innovative platform, encompassing a web interface and a mobile application, promises to revolutionize investment opportunities for retail investors, not only in Kenya but also globally. The CBK DhowCSD app will be compatible with Android and iPhone devices, marking a significant step towards digital financial inclusivity.
The primary objective of DhowCSD is to simplify the process of investing in Government Securities for retail investors, making it both accessible and convenient. With this platform, investors in Treasury bills and bonds will bid farewell to the days of manual transactions at the Central Bank of Kenya (CBK), as the modernized Central Securities Depository (CSD) takes center stage.
The development of Central Securities Depository Dhow signifies the government’s unwavering commitment to removing trade barriers and fostering inclusivity in the nation’s financial growth. President Ruto emphasized, “The electronic infrastructure will deepen the domestic capital market, promote savings and investments, besides fostering the growth and stability of our financial markets.”
Since the platform’s launch in July, an impressive 6,366 new accounts have been opened, with a remarkable daily average of 250 accounts, representing a significant departure from the previous system, which saw only 100 accounts opened monthly.
The new platform empowers retail investors to participate in securities auctions, view auction results, access payment details, monitor upcoming corporate actions, review updated portfolio statements, and initiate secondary market and pledge instructions with ease. Its development spanned three years, enabling investors to directly open bond trading accounts with the CBK, streamlining the bidding process for preferred securities via mobile devices.
CBK Requirements for Signing Up on DhowCSD
To access the Investor Portal App (Mobile App), prospective users are required to have a smartphone capable of running the application, facilitating investment in various Government Securities products. Additionally, users must be at least 18 years old and possess an active mobile subscription within Kenya. The Monetary Authority reserves the right to verify the authenticity and status of users’ mobile numbers through local Mobile Network Operators (MNOs).
Furthermore, the Monetary Authority possesses the authority to request personal information held by MNOs, including phone numbers, names, dates of birth, ID or Passport numbers, and other pertinent details to comply with regulatory “Know Your Customer” requirements.
The CBK DhowCSD platform is expected to attract more than Sh406 billion ($2.86 billion) from Kenyans living abroad. In the previous year, Kenyan expatriates remitted a substantial $4 billion (Sh569 billion) to the country, highlighting the potential for the platform to tap into this significant source of investment.
The launch of Central Securities Depository DhowCSD marks a pivotal moment in Kenya’s financial history, with the potential to unlock new investment opportunities, drive economic growth, and empower ordinary Kenyans to contribute to the nation’s development. As the platform continues to gain traction, it has the potential to revolutionize the way investors engage with Government Securities, ultimately contributing to a more robust and inclusive financial ecosystem.
Photo Source: TechArena
11th September, 2023
By: Delino Gayweh
Serrari Financial Analyst
