How to Buy Bonds in Kenya

Overview

Buying Kenya Treasury Bonds involves two stages: setting up your Central Depository System (CDS) account with the Central Bank of Kenya, and then placing a bid at a primary auction or buying on the secondary market through the NSE.

The process is straightforward once you have your CDS account — you can bid online from home, receive bonds electronically, and collect semi-annual coupon payments directly into your bank account.

Part 1: Setting up your CDS account

The Central Depository System (CDS) is the electronic registry that records government bond ownership. All bond holdings are held in your CDS account — not in paper form. You need a CDS account before you can bid at any auction.

What you need

• National ID or valid passport
• Kenya Revenue Authority (KRA) Personal Identification Number (PIN)
• Bank account in your name (local Kenyan bank — for coupon payments)
• Completed CDS account opening form (available at CBK or licensed custodian)

Two ways to open a CDS account

Option A — Direct with the Central Bank of Kenya (free)

• 1
  Download the CDS-1 form from the CBK website (Central Bank of Kenya → Government Securities → CDS Account Opening). Or collect a physical form from any CBK branch in Nairobi, Mombasa, Kisumu, Nakuru, Eldoret, or Nyeri.
• 2
  Fill in the form with your personal details, National ID / Passport number, KRA PIN, and your bank account details (for receiving coupon payments and principal repayment).
• 3
  Attach certified copies of your National ID (front and back) and a recent utility bill or bank statement as proof of address (not older than 3 months).
• 4
  Submit in person at any CBK branch or by post to:
  The Director, Financial Markets Department, Central Bank of Kenya, P.O. Box 60000-00200, Nairobi.
• 5
  Receive your CDS account number within 3–5 business days. CBK will send your account number by post or email depending on what you provided.

Option B — Through a licensed custodian / commercial bank

All major Kenyan banks (Equity, KCB, Co-operative, NCBA, Stanbic, Standard Chartered, etc.) and licensed stockbrokers can open a CDS account on your behalf. This is often faster and lets you manage bids through your bank's app or internet banking portal.

• Equity Bank — via Equitel or the Equity app
• KCB Bank — via the KCB mobile app or a branch
• Co-operative Bank — via Co-op Bank online or branch
• NCBA Bank — via NCBA Loop or a branch
• Stockbrokers listed on the NSE — direct market access for secondary market trading

CBK DhowCSD — Online Portal

CBK operates the DhowCSD online platform where investors can:

• Submit auction bids online (primary market)
• View your bond portfolio and holding statements
• View payment history (coupons received)
• Transfer bonds between CDS accounts

Access: www.cds.centralbank.go.ke. To register, you need your existing CDS account number from CBK. First-time setup requires visiting a CBK branch to activate your DhowCSD online account.

Part 2: Bidding at a primary market auction

The CBK holds bond auctions approximately every two weeks. Results are published on the CBK website and on the Nairobi Securities Exchange (NSE). KTB Intelligence shows all upcoming auctions on the Auction Calendar.

Auction timetable

How to place a bid — step by step

• 1
  Find the current auction — check the CBK website or KTB Intelligence Auction Calendar. Note the bond's issue number, coupon rate, maturity date, and the bid submission deadline.
• 2
  Decide: competitive or non-competitive bid?
  • Non-competitive — simpler. You state the amount; CBK gives you the auction's cut-off yield. Guaranteed allocation. Maximum KES 20,000,000 per auction.
  • Competitive — you state both the amount AND the yield you'll accept. If your yield ≤ cut-off, you're filled at your yield. If it's too high, your bid is rejected.
• 3
  Use KTB Intelligence to estimate returns — go to the Primary Market Calculator, enter the bond details, your face value amount, and your target yield or purchase price. You'll see the full cash-flow schedule before committing.
• 4
  Submit your bid via one of these channels:
  • DhowCSD online portal (if your account is registered online)
  • Your bank's app or internet banking (if the bank is a CBK primary dealer)
  • In person at a CBK branch or your bank's Treasury department
  • By fax/email to the CBK Financial Markets Department (for large institutional bids)
• 5
  Ensure funds are available on settlement date (T+2). CBK will debit your linked bank account for the face value (or the discounted purchase price if your yield differs from the coupon rate).
• 6
  Receive confirmation — after the auction, CBK publishes results. Successful bidders receive a confirmation and the bonds are credited to their CDS account. You can verify on the DhowCSD portal.

Part 3: Buying on the secondary market

If you miss a primary auction or want to buy an existing bond, you can purchase it on the Nairobi Securities Exchange (NSE) through a licensed stockbroker or bank's trading desk.

Key differences from primary market

How to buy on the secondary market

• 1
  Open a brokerage account with an NSE-licensed stockbroker (e.g. Faida Securities, Standard Investment Bank, Genghis Capital, NIC Securities, etc.) or use your bank's bond trading desk.
• 2
  Identify the bond you want using KTB Intelligence's Bond Database. Check the ISIN, remaining tenor, coupon rate, and NSE live price.
• 3
  Calculate the dirty price using the Secondary Market Calculator. This tells you exactly how much you'll pay, including accrued interest.
• 4
  Place a buy order with your broker, specifying the bond ISIN, face value amount, and maximum clean price you're willing to pay.
• 5
  Settlement — T+3 on the NSE (3 business days). The dirty price is debited from your account and the bonds appear in your CDS account.

Part 4: After you buy — managing your holdings

Receiving coupon payments

Kenya Treasury Bonds pay coupons semi-annually. CBK automatically credits the net coupon (after withholding tax) directly to the bank account linked to your CDS account. No action is needed on your part.

• FXD bonds: Coupon reduced by 15% withholding tax before payment
• IFB bonds: Full coupon paid — 0% withholding tax
• CBK sends payment statements that can be used for KRA filing

Selling before maturity

If you need your money before the bond matures, you can sell on the NSE secondary market through your stockbroker. The price you receive depends on prevailing market conditions — you may sell at a profit or a loss relative to your purchase price.

At maturity

On the maturity date, CBK automatically credits the full face value to your linked bank account. The bond is cancelled from your CDS account. No action required.

Tracking your portfolio on KTB Intelligence

Add your holdings to the Portfolio Tracker to see your total income, upcoming payment dates, YTM on purchase price, and projected cash flows. Set alerts for upcoming coupon dates and maturity so you never miss a payment.

Frequently asked questions