Kenya infrastructure bond 2023, how to open a CBK CDS account online for Kenyans, and how to buy Kenya Government infrastructure bonds online, is what we cover in today’s article.
The Central Bank of Kenya has made significant strides in modernizing its services to facilitate ease of access and promote financial inclusion.
One such development is the ability for individuals and joint account holders to open CDS (Central Depository System) accounts online through the Dhow CSD portal (https://dhowcsd.centralbank.go.ke/).
This online service simplifies the process of investing in government of Kenya securities, including infrastructure bonds, making it more accessible to the general public.
The other advantage of the Dhow CSD portal is that the CBK CSD portal shows all the Treasury Bills & Treasury Bonds on offer.
Just like in the past, the secret is to submit only competitive bids.
In this article, we will walk you through the steps to open a CDS account online in Kenya and discuss the advantages of investing in Kenya’s government infrastructure bonds.
What's Covered in This Article
Opening a Central Bank of Kenya CDS Account Online
In the past, opening a CDS account often required visiting a physical location of one of the CBK branches in Kenya, then going to your bank for signatures, then going back to CBK to submit the various documents.
However, the Central Bank of Kenya has introduced an online platform that streamlines the process.
Here’s how you can open a CDS account online from the comfort of your home through the CBK Dhow CSD online portal:
Step 1: Gather Required Documents
To initiate the process, ensure you have the following documents ready:
- A colored passport-size photograph of the account holder in soft copy.
- A clear soft copy of your KRA (Kenya Revenue Authority) PIN.
- A clear soft copy of your national identity card (ID), valid passport, or alien certificate for verification.
- An active email address for correspondence and sign up.
Having these documents readily available will expedite the CDS account-opening process.
Step 2: Visit the Dhow CSD Portal
Access the Dhow CSD portal at https://dhowcsd.centralbank.go.ke/. This is the official online platform for opening and managing your CBK CDS account in Kenya.
Step 3: Create an Account
To begin, you will need to create an account on the platform.
This typically involves providing your email address and setting a password for your account.
Ensure your email address is valid, as it will be used for communication throughout the process.
Step 4: Provide Personal Information
Once you have created an account, you will be prompted to enter your personal information, including your full name, date of birth, and contact details.
Make sure this information matches the documents you have gathered.
Step 5: Upload Documents
The platform will guide you to upload the required documents:
- Colored passport-size photograph.
- Clear copy of your KRA PIN.
- Clear copy of your national ID, passport, or alien certificate.
- Copy of your tax exemption certificate if applicable.
Ensure the documents are of high quality and legible to facilitate the verification process.
Step 6: Activate Your Account
Once your documents have been successfully uploaded and you’ve completed the sign up process, you will receive an email with a code. Enter that code into the portal.
Step 7: Verification
The Central Bank of Kenya will review the documents provided to verify your identity and eligibility.
Step 8: Activate Your Account
Once your documents have been successfully verified, you will receive an email with instructions on how to activate your CDS account. Follow the provided link and set up your account with a unique PIN.
Step 9: Start Investing
With your CDS account activated, you are now ready to start investing in government securities, including infrastructure bonds, treasury bills, etc.
Investing in Kenya Government Infrastructure Bonds
Kenya government infrastructure bonds are an attractive investment option for individuals.
They offer several advantages, making them a popular choice for those seeking a secure and rewarding investment opportunity:
- No Withholding Tax on Interest: One of the significant benefits of investing in government infrastructure bonds is that you are not required to pay withholding tax on the interest earned. This means you receive the full interest amount as stated in the bond’s terms.
- Regular Interest Payments: Government infrastructure bonds typically offer semi-annual interest payments. This regular income can provide a steady source of passive income to investors.
- Return of Invested Amount: At the end of the bond’s term, you will receive the full invested amount, known as the principal, back. This feature guarantees that your capital is returned, making it a relatively low-risk investment.
- Diverse Investment Options: The government offers various infrastructure bonds with different terms and interest rates, allowing you to choose the one that best aligns with your financial goals and risk tolerance.
PROSPECTUS FOR GOVERNMENT OF KENYA INFRASTRUCTURE BOND OFFER -> 6.5 YEAR AMORTIZED BOND
ISSUE NO IFB1/2023/6.5 — NOVEMBER 2023
Conclusion
Opening a Central Bank of Kenya CDS account online has never been easier, thanks to the Dhow CSD portal.
With the right documents in hand, you can initiate the process from the comfort of your home.
Once your CDS account is active, you gain access to various government securities, including infrastructure bonds, which offer numerous advantages such as no withholding tax, regular interest payments, and the return of your invested amount at the bond’s maturity.
As you consider investing in government infrastructure bonds, make sure to perform due diligence and understand the specific terms and conditions of the bonds you choose.
With these investments, you can benefit from financial security and a consistent source of passive income, helping you achieve your financial goals.
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