Inside Kenya’s Upcoming Digital Bond System: 40 Million Transactions Capacity Explained
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The Central Bank of Kenya (CBK) has announced that a new digital bond retail system for the mass market will be rolled out by June next year, aiming to make government securities accessible to everyday Kenyans while reducing dependence on external financing.
The proposed digital bond retail system will feature a user-friendly interface, a retail depository, and efficient payment and settlement mechanisms. Unlike traditional bond platforms that serve mainly institutional investors, this system targets the mass market, allowing small-scale savers and larger domestic investors to participate.
The bond retail system will have a capacity to handle 40 million transactions simultaneously.
Governor Kamau Thugge said, “We are just going through the procurement process now and I hope we will be able to complete it within this financial year and have that retail bond system in place. It’s just part of deepening the financial markets. Last year we funded the government to the tune of Sh850 billion, I don’t think we have ever done that before.”
The user interface will enable investors to purchase, track, and redeem bonds via mobile devices or digital channels. The retail depository will securely maintain bond ownership records, while efficient payment and settlement features will support real-time transactions, reducing operational risks.
The CBK, by leveraging Kenya’s digital infrastructure, aims to create a system that is accessible, secure, and scalable, ensuring it can meet the needs of millions of retail investors.
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Kenya’s push for a digital bond retail system comes as the government anticipates a revenue shortfall of Sh923.2 billion in the 2025/26 financial year. To address this gap, it plans to mobilize Sh635.5 billion domestically, tapping into local savings rather than relying heavily on external debt, which carries foreign exchange and interest rate risks.
Domestic mobilization also gives the government greater control over repayment terms and reduces exposure to global economic shocks.
As of June 2025, digital credit providers had disbursed 5.5 million loans worth Sh76.8 billion, illustrating the success of mobile-enabled financial services.
The new digital bond retail system for the mass market will similarly use mobile platforms like USSD and applications to reach a wide audience, including rural areas, fostering a culture of savings and broadening participation in government securities.
The CBK is completing procurement and expects the system to be operational within the current financial year. The initiative builds on previous financial inclusion efforts, such as M-Akiba, a mobile-based bond launched in 2017 that allowed small-scale investors to purchase government securities with as little as Sh3,000.
Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.
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