DhowCSD sees 100% growth in investor sign-ups
The Central Bank of Kenya’s (CBK) digital government bond trading platform, DhowCSD, has seen a surge in investor participation since its launch, with over 80,000 new investors signing up.
This surge represents a double-digit increase since the platform’s debut in July 2023, reflecting an increasing appetite for government paper among retail investors in Kenya.
DhowCSD, which went live on July 31, 2023, is an upgrade of the Central Securities Depository (CSD) platform, designed to enhance the efficiency of investing in Treasury Bills and Treasury Bonds.
“When we went live with DhowCSD, we had 40,000 accounts. Today, that number is somewhere between 80,000 and 90,000,” CBK Governor, Dr. Kamau Thugge said in a media interview with Business Daily.
“In less than a year, the number of accounts has doubled. DhowCSD has brought convenience; previously, it would have been intimidating to go to the CBK for someone who doesn’t know where to start.”
DhowCSD allows investors to open CSD accounts and execute transactions through their smartphones and the internet, eliminating the need to physically visit the CBK offices.
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Overall, this efficiency has made it easy for retail investors to buy and sell government bonds from the comfort of their homes or offices.
Additionally, online DhowCSD platforms are enabling Kenyans living and working abroad to boost remittances through investments in government paper.
Already, the banking sector regulator has conducted investor tours in Kenya’s primary source of diaspora remittances – the US and Britain — and plans to grow its reach in other destinations.
“The convenience experienced by Kenyans at home can be experienced by Kenyans in San Francisco, China, Japan, and elsewhere,” added Dr Thugge.
Since July last year, the DhowCSD has posted an increase in private investor participation with data showing retail buyers accounted for 12.9 percent of domestic government debt, amounting to Kes671 billion as of June 19.
