The Central Bank of Kenya (CBK) is shifting to develop entry to authorities securities by creating a digital Retail Bond System that may enable Kenyans to purchase, commerce and handle authorities bonds via their telephones and on-line platforms.
In an in depth procurement doc, CBK introduced it’s looking for a vendor to design, provide and implement the system, which is predicted to serve thousands and thousands of customers concurrently and stay operational across the clock.
“The Retail Bond system will present a platform for traders to open and keep authorities securities accounts, buy authorities securities, remit funds, obtain curiosity/coupon funds and promote/rediscount their securities utilizing their cellphones and web site,” the doc states.
The platform can even combine with varied monetary and authorities techniques, together with cell community operators (MNOs), business banks, Kenya’s core banking infrastructure, the Central Securities Depository (CSD), the nationwide tax system and id verification databases.
Requirements for Retail Bond System
It should help funds via cell wallets, Real-Time Gross Settlement (RTGS), SWIFT and Kenya’s quick cost networks.
According to CBK, the system should “seamlessly help a minimal of 40 million transactions concurrently” and be accessible on a 24/7 foundation via USSD codes, cell purposes and net portals.
Users will be capable to handle their accounts, place bids in bond auctions, and take part in secondary bond buying and selling immediately from their units.
The financial institution additionally intends for the system to allow varied types of bond issuance, together with authentic auctions, faucet gross sales and reopening, in addition to rediscounting and collateralization for loans.
It should accommodate a particular retail bond issuance programme, with pricing and valuation aligned to native market practices.
CBK to Vendors
Key options will embody portfolio administration instruments, automated reconciliation, alerts and notifications by way of SMS and electronic mail, and enterprise intelligence dashboards.
The system should additionally present a “detailed audit path,” sturdy role-based entry controls, and catastrophe restoration capabilities.
In phrases of long-term planning, the central financial institution famous that the platform ought to be scalable sufficient to incorporate digital retail bonds on blockchain and AI applied sciences.
The doc outlines that CBK would require distributors to enter an escrow settlement to make sure steady system availability even when the seller fails to ship ongoing help.
A service-level settlement can even be required to supply upkeep and efficiency ensures.
However, CBK made clear that integration with its T24 core banking system is just not a part of the venture scope.
This transfer is a part of CBK’s broader push to deepen public participation in monetary markets and enhance the inclusivity of presidency bond funding.
