Kenya is deepening retail access to government securities with the planned launch of a digital Retail Bond System, a mobile-first platform that will allow individuals to buy, trade, and manage bonds directly from their phones.
The Central Bank of Kenya (CBK) is spearheading the initiative as part of broader efforts to enhance financial inclusion and expand the country’s retail investor base.
In a recently issued procurement notice, the bank said it is seeking a vendor to design, supply, and implement the system.
“The Retail Bond system will provide a platform for investors to open and maintain government securities accounts, purchase government securities, remit payments, receive interest/coupon payments, and sell/rediscount their securities using their mobile phones and website,” CBK said in the document.
The move comes as the Nairobi Securities Exchange prepares to introduce single-unit share trading, ending the 100-share minimum that has long excluded small investors.
Kenya has 1.6 million retail investors, with fewer than 40,000 actively trading. Under its 2025–2029 strategic plan, the country aims to grow that number to 9 million.
According to CBK, the mobile bond system must be able to handle at least 40 million transactions simultaneously and be accessible round the clock via USSD, mobile apps, and the web. Users will be able to bid in auctions, receive coupon payments, and trade bonds in the secondary market.
The platform is expected to integrate with mobile wallets, commercial banks, the Central Securities Depository, tax and ID systems, and mobile network operators. It must support bond auctions, tap sales, rediscounting, and collateralisation.
Additional features will include portfolio tracking, automated reconciliation, business dashboards, and alerts via SMS and email. The system must also provide a detailed audit trail, disaster recovery capabilities, and be scalable enough to support blockchain and AI-based bond issuance in future.
While the platform will connect to Kenya’s core financial infrastructure, CBK noted that integration with its T24 core banking system is not part of the project scope.
Analysts say platform could redefine retail investing
“CBK wants to turn your phone into a retail bond desk. And frankly, it’s about time,” said Edwin Dande, CEO of Nairobi-based Cytonn Investments.
He argued that previous efforts to open up the bond market, such as M-Akiba, struggled to gain traction.
Launched in 2017, M-Akiba allowed Kenyans to invest in bonds from as little as Sh3,000 or $23 at current rates via their phones. But according to Dande, it faced challenges including a clunky interface and poor liquidity.
He said the platform raised less than Sh300 million ($2.3 million) in six years before being shelved in 2023.
By contrast, Dande said DhowCSD — M-Akina’s successor— has seen stronger uptake, with turnover exceeding Sh1.45 trillion (roughly $11 billion).
However, he noted that the platform remains skewed towards more tech-savvy or institutional investors.
“The new CBK plan wraps everything retail investors need—onboarding, trading, interest tracking, resale—into a mobile-friendly package,” he said. “It doesn’t just democratise bonds; it de-institutionalises them.”
He added that in a country where mobile money is second nature, making bonds as easy to access as airtime could finally help everyday Kenyans turn saving into investing.
NB: Financial figures in Kenya Shillings were converted using Sh129.4/$1 as of August 7, 2025.
