CBK Introduces M-Pesa Option When Buying Bonds

The Central Bank of Kenya (CBK) has introduced mobile money payment for successful bids of Treasury Bills and Bonds.

In a statement dated Friday, November 21, CBK announced that the payment would only be available on M-Pesa before rolling it out to other mobile money platforms.

Previously, Kenyans had to rely on banks to pay for the accepted bids.

Read more: Can Bonds Pay Your Rent? How Much Investment You Need to Earn Between Ksh15K & Ksh30K Per Month

‍Here is the process of paying for a bid via M-Pesa 

As detailed by CBK, the payment is only prompted from the DhowCSD account.

You go to the transaction tab and prompt the payment of the bid before proceeding to make the payment from your M-Pesa.

"You can now pay for your successful bid through your mobile phone. Payment is initiated under the transaction tab within the DhowCSD app/portal only," read the statement in part.

"Make payments of up to Ksh250,000. Currently available on M-PESA only (other platforms to follow)."

Read more: Advantages of Investing in Treasury Bonds

‍How to Open a DhowCSD Account

You can access and download the app either on the Google Play Store or the Apple App Store.  

After downloading the app, you will then be required to register using an active email address. 

When registering the details needed include name, economic sector, birth date, gender, identifier, identifier number, issuing authority, residency, nationality, occupation, and KRA PIN number, among others. 

Upon completing the registration process, the account will be active for use within 48 hours.

After which, you can log into the platform and go through the advertised Treasury  Bonds and Bids and select the one that is best suited for you based on the offer.

On the left top side of the bid form, you can opt to either place a (Competitive or Non-Competitive).

Fill in the amount you desire to bid and the desired rate in 'Yield' field (applicable only to Competitive option)

Investors are also required to detail the source of funds (local or offshore) and the specific source of funds (salary, among others).

Before submitting the bid, accept the legal and fund terms.