Government Securities
What are Government Securities?
Government securities are financial instruments issued by the government to raise money for funding public projects, infrastructure development, and budgetary needs. The types of Government securities include:
a) Treasury Bills (T-bills): These are short term government securities with maturities of 91, 182 and 364 days. T-bills are issued weekly subject to applicable terms.
b) Treasury bonds (T-bonds): These are medium-to-long-term debt instruments with maturities of 2 yrs and above. They are issued on a monthly basis subject to applicable terms.
Who can invest in Treasury Bills or Bonds?
- Participation is open to all individuals and organisations whether local, diaspora or foreign.
How do I invest in Treasury Bills or Bonds?
- To invest in T-Bills or T-Bonds, you need a Central Securities Depository (CSD) account. This account is opened and operated online through DhowCSD.
- CSD accounts can be opened directly with the Central Bank of Kenya (CBK) or through authorized custodial institutions (commercial banks and investment banks).
- Individual investors can open either single or joint CSD accounts.
What is the DhowCSD?
- The DhowCSD is a secure, efficient, and user-friendly platform of investing in Government Securities.
- It is available on the web, App Store, and Google Play Store for investors who wish to open accounts directly with CBK.
What services does DhowCSD offer?
- Account management and onboarding.
- Primary market transactions i.e. T-Bill and T-bond purchases.
- Secondary market transactions i.e. T-bill and T-bond purchase or sale.
- Access to portfolio holding statements.
What are the CSD account opening requirements for individual/ joint accounts
- Valid e-mail address
- Phone number
- Passport-sized Photo
- Identification document (National ID/Passport/Alien card)
- KRA PIN Certificate OR
- KRA exemption certificate where applicable.
- Active commercial bank account held in a Kenyan bank
Note: To create a joint account, each party must first have an individual, existing and active profile on the DhowCSD account.
What are the CSD account opening requirements for corporate accounts
- Valid e-mail address
- Registration Document
- Board resolution
- Corporate entity KRA PIN
- Corporate entity telephone number
- Active commercial bank account held in a Kenyan bank
- KRA exemption certificate where applicable.
What is the minimum investment for Government Securities?
The minimum investment is KES 50,000 and any additional amount MUST be in multiples of KES. 50,000.
What are the advantages of T-bills and T-bonds as investment tools?
- Safety: T-Bills and T-Bonds are issued and backed by the Government of Kenya, making them one of the safest investment options available.
- Returns: Treasury Bonds provide an added means of income through semi-annual interest payments during the life of the bond.
- Liquidity: T-bills have short-term maturity periods, allowing investors to access their funds quickly. T-Bonds, though long term, can be sold on the Nairobi Securities Exchange (NSE) before maturity. Additionally, T-bills and T-bonds can be rediscounted (sold back to CBK) before maturity.
- **Government Securities can be pledged as collateral (guarantee) for a loan, offering a secure way to access financing.
Where can investors get help?
Kindly contact CBK call centre:
Tel: +254 709 081 222
Toll-Free (USA): +1 833 201 0220
Toll-Free (Kenya): 0800 720 222
Email: [email protected]
