Investors from around the world can now tap into Kenya's bond market through the Central Bank's Government Central Securities Depository (DhowCSD) digital platform following the launch of Clearstream-Kenya link on Thursday.

According to the CBK, Clearstream connection to local government securities is poised to give institutional investors efficient access to the country's financial markets.

"This is a significant milestone in the development of Kenya's financial markets. The link is expected to deepen liquidity, broaden the investor base, and enhance the resilience of the domestic debt market," the CBK said in a market update on Thursday.

The banking industry regulator added that by harnessing a unique account platform, the Clearstream link will go a long way in supporting trading in government bonds, infrastructure bonds and treasury bills.

Modern financial markets

CBK's Clearstream link is part of the country's bold push to modernize Kenya's financial markets platforms, deepen integration with international financial systems as East Africa's crown jewel steps up push as vital hub in commerce.

Clearstream is an international settlement and custody company specifically designed for both domestic and international securities.

CBK said its link is the 60th domestic market connection within Clearstream's international network and Nairobi is the second in Africa, after South Africa.

"This development builds on transformative initiatives aimed at unlocking the full potential of the DhowCSD, which is transforming Kenya's financial markets through enhanced operational efficiency, expanded digital access, deeper markets that promote broader financial inclusion, and improved monetary policy operations," CBK explained.

Launched in July 2023, DhowCSD is a trading platform that displays live portal dashboards, auction results, upcoming corporate actions, and updated portfolio statements.

Users can buy or sell existing bonds or initiate asset pledge instructions directly on the app.

[email protected]