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
Article and News Disclaimer
The information provided on www.serrarigroup.com is for general informational purposes only. While we strive to keep the information up to date and accurate, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
www.serrarigroup.com is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information on the website is provided on an "as-is" basis, with no guarantee of completeness, accuracy, timeliness, or of the results obtained from the use of this information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.
In no event will www.serrarigroup.com be liable to you or anyone else for any decision made or action taken in reliance on the information provided on the website or for any consequential, special, or similar damages, even if advised of the possibility of such damages.
The articles, news, and information presented on www.serrarigroup.com reflect the opinions of the respective authors and contributors and do not necessarily represent the views of the website or its management. Any views or opinions expressed are solely those of the individual authors and do not represent the website's views or opinions as a whole.
The content on www.serrarigroup.com may include links to external websites, which are provided for convenience and informational purposes only. We have no control over the nature, content, and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorsement of the views expressed within them.
Every effort is made to keep the website up and running smoothly. However, www.serrarigroup.com takes no responsibility for, and will not be liable for, the website being temporarily unavailable due to technical issues beyond our control.
Please note that laws, regulations, and information can change rapidly, and we advise you to conduct further research and seek professional advice when necessary.
By using www.serrarigroup.com, you agree to this disclaimer and its terms. If you do not agree with this disclaimer, please do not use the website.
www.serrarigroup.com, reserves the right to update, modify, or remove any part of this disclaimer without prior notice. It is your responsibility to review this disclaimer periodically for changes.
Serrari Group 2023
