The Central Bank of Kenya has opened a new payment channel for government securities. Investors can now settle successful bids for Treasury bills and bonds through M-Pesa, moving up to Sh250,000 directly from their phones.
The update inside DhowCSD, the digital platform CBK built to let ordinary Kenyans buy and manage government securities without going through a broker. Until now, settling a winning bid meant a separate trip to a bank or a manual transfer. M-Pesa closes that gap.
How the Payment Works
Investors initiate payment from the Transactions tab inside the DhowCSD mobile app or web portal, then complete the transfer through M-Pesa. CBK has capped these mobile payments at Sh250,000 per transaction, and for now, M-Pesa is the only mobile option available. The bank says it plans to add other platforms later, though it has not given a timeline.
The mechanics mirror the standard DhowCSD settlement process. After an auction closes, successful bidders retrieve their payment key and the amount due from the Transactions tab, then clear the balance before the settlement deadline.
A Platform Built for Retail Investors
DhowCSD launched in 2023 to widen access to government debt, letting individuals and corporates buy bonds and bills directly instead of routing through commercial banks or investment banks. The platform has steadily pulled in retail money: individual investors now make up the bulk of DhowCSD account holders, and non-institutional holdings have grown as a share of total government securities.
Mobile settlement is the latest step in that push. As Khusoko reported in December, Kenya has spent nearly a decade folding mobile money into capital markets, starting with the world’s first mobile bond sale in 2017 and extending now toward mobile stock trading through Safaricom and the Nairobi Securities Exchange’s upcoming Ziidi Trader. The DhowCSD M-Pesa feature fits the same pattern: strip out the friction between having money on your phone and putting it to work in formal financial markets.
Getting Started on DhowCSD
Investors who have not yet registered need an active email address, a Kenyan mobile number, a KRA PIN, settlement bank details, a passport size photo, and a valid identification document. Registration must be completed within seven days, or the system deletes the incomplete profile automatically.
Once approved, typically within two to three days, investors log into the DhowCSD portal or the mobile app, available on Google Play and the App Store, to view active auctions and place competitive or non-competitive bids.
Why It Matters
Kenya’s savings culture has long lagged its regional peers, and cost or convenience barriers have kept many potential investors out of government securities. A Sh250,000 mobile settlement limit will not move every investor, but it removes a real obstacle for the retail buyers CBK is trying to court. Paired with growing mobile fund products like Ziidi and the broader digitisation of DhowCSD, it points to a market where buying a government bond takes little more effort than sending money to a friend.
