The Central Bank of Kenya (CBK) has introduced a new trading link that will allow international investors to participate in the country’s government securities market, a move expected to boost liquidity and expand foreign investment.
In a statement issued on June 25, CBK confirmed that Luxembourg-based Clearstream has connected to Kenya’s Government Central Securities Depository (DhowCSD). This connection will give institutional investors access to Treasury bills, government bonds, and infrastructure bonds through a single omnibus account.
“The Central Bank of Kenya welcomes the establishment of the Clearstream-Kenya Link, which is expected to provide efficient access by international investors to Kenyan Government securities, supported by the Government Central Securities Depository (DhowCSD),” the statement read.
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The Clearstream-Kenya Link makes Kenya the second African country after South Africa to join Clearstream’s global network of 60 domestic markets. The arrangement allows foreign investors to trade government securities without opening separate accounts locally, with securities for multiple clients held under one omnibus account.
CBK has appointed Standard Chartered Bank as the local custodian to manage cash transactions and safeguard the securities on behalf of investors.
Kenya’s government securities, including Treasury bills, bonds, and infrastructure bonds, will also serve as collateral in financial transactions, enabling investors to engage in foreign exchange operations using the Kenyan shilling. The move is expected to strengthen Kenya’s capital markets by attracting more foreign participation and supporting the country’s broader economic growth agenda.
By Ochola Victor
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