More Kenyans are investing in government bonds, attracted by high returns and an easy mobile sign-up process. Since the launch of the Central Bank of Kenya’s DhowCSD app in June 2023, households now hold Sh434 billion in bonds, equal to 6.57 percent of the country’s domestic debt.
The app has made it easier for ordinary people, diaspora investors, and even youth to buy bonds, leading to record growth. CBK data shows that Treasury bonds sold between July and September gave returns of 12–14 percent, which was higher than shares that remained unstable.
In comparison, bank fixed deposits dropped to as low as 2.74 percent in August. Treasury bill rates also went down, though still attractive, at 7.91 percent for 91 days, 9.03 percent for 182 days, and 9.53 percent for 364 days. Tax-free infrastructure bonds are paying up to 12.96 percent, making them the best choice for safe investors.
Big investors are also buying more, with pension funds, insurance firms, and fund managers now holding 78.5 percent of all government bonds. The new DhowCSD system helps CBK track real owners and reduce risks.
Experts say the rise in local investment will help Kenya depend less on foreign loans as global aid becomes uncertain and inflation stays high.
