July 18, 2024

DhowCSD Makes History: CBK’s Platform Clinches Global Award for Financial Innovation

CBK

The Central Bank of Kenya’s (CBK) DhowCSD platform has been crowned the winner of Central Banking’s Payments and Market Infrastructure Initiative Award.

DhowCSD, launched in July 2023 and officially inaugurated by President William Ruto in September, has revolutionized the way Kenyans access and trade government securities. 

This innovative platform empowers users to manage their Central Securities Depository (CSD) accounts entirely through a mobile app or an e-portal. This eliminates the previous requirement for physical visits to the CBK, democratizing access to government bonds for a wider audience, including the Kenyan diaspora. 

The convenience and accessibility offered by dhowcsd have not only facilitated easier participation in the bond market but also bolstered the CBK’s monetary policy operations.

Governor Dr. Kamau Thugge expressed his elation at the award, highlighting the CBK’s unwavering commitment to cultivating an agile and transformative financial market infrastructure.

He emphasized dhowcsd’s pivotal role in integrating Kenya with the global financial market, streamlining trade in Kenyan government securities both domestically and internationally. 

“The dhowcsd serves to facilitate the trading of Kenya Government securities locally and across the border, while facilitating the integration of Kenya with international financial markets.

We are grateful to the Central Banking Awards Committee for acknowledging the outstanding efforts our team has dedicated into developing this revolutionary, cutting-edge solution,” cbk governor Dr. Thugge added.

The platform’s impact has been undeniable, with a staggering 63% surge in the number of investors since its launch – a testament to its robust user acceptance. DhowCSD has transformed the landscape of government securities trading, making it a paperless, convenient, and secure process accessible from anywhere in the world.

Central Banking Publications, a renowned specialist in public policy and financial markets, acknowledged dhowcsd’s groundbreaking character and its ability to foster financial inclusivity. The award specifically recognizes dhowcsd’s dedication to:

  • Full Electronic Accessibility: The platform was designed with the intention of being entirely electronic, ensuring inclusivity for a wider range of Kenyans.
  • Simplified Access for Retail Investors: DhowCSD empowers ordinary Kenyans, including those residing abroad, to participate in the government bond market with ease through a user-friendly mobile app or e-portal.
  • Enhanced Wholesale Market Operations: DhowCSD not only benefits retail investors but also streamlines operations for wholesale market participants, supporting the CBK’s monetary policy initiatives.

DhowCSD, accessible through a mobile app and an investor portal, empowers users to manage their CBK investment accounts conveniently from their devices. 

DhowCSD goes beyond simply providing account management. The platform empowers users with a suite of functionalities designed to streamline their investment experience.

Investors can directly participate in government securities auctions through the platform and receive real-time results along with convenient payment options. 

READ ALSO: Kenyans Bearing the Burden of High Interest Rates on Personal Loans

DhowCSD promotes transparency by providing information on upcoming corporate actions, allowing users to make informed investment decisions. Up-to-date portfolio statements are readily available, enabling users to effectively track their investments.

The platform doesn’t stop at primary issuance; it also facilitates secondary market transactions and pledge management. 

Furthermore, dhowcsd seamlessly facilitates electronic transactions across local, regional, and international financial markets.

Security remains a top priority, with the platform offering features for users to confidently monitor and update the status of their securities transactions.

The global recognition bestowed upon dhowcsd by the Central Banking Awards committee stands as a testament to Kenya’s commitment to financial innovation.

The platform’s success in democratizing access to government securities and fostering financial inclusion is likely to serve as a catalyst for continued growth. It may also promote dynamism within the Kenyan financial sector. 

As dhowcsd continues to evolve, one can expect even more features and functionalities that empower Kenyan citizens, both domestically and abroad, to navigate the financial landscape with greater confidence and ease.