Need cash but don’t want to sell your government bonds? Standard Chartered has a solution that lets you have your cake and eat it too.
Standard Chartered Bank has rolled out an innovative lending facility that allows Kenyan investors to borrow against their government bonds purchased through the Central Bank of Kenya’s DhowCSD platform. This new product addresses a common challenge faced by bond investors: the need for liquidity without sacrificing their investments.
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How It Works
The facility operates as an overdraft, giving investors access to funds while their bonds continue to generate bi-annual coupon payments. It’s a win-win situation; you get the cash you need today while your investments keep working for you in the background.
“In line with the government’s agenda to digitise and democratise financial solutions and access for all citizens, we saw an opportunity to extend our Wealth Lending capability to Kenyans who have invested directly with CBK and would require liquidity,” explains Edith Chumba, Standard Chartered’s Head of Wealth & Retail Banking for Kenya and East Africa.
The facility comes with several attractive terms:
- Minimum loan amount: KES 50,000
- Maximum amount: Based on your bond portfolio size
- No arrangement fees: Keeping costs transparent and competitive
- Flexible repayment: Structured as an overdraft rather than a traditional loan
- Competitive interest rates: Making borrowing more affordable
Standard Chartered is targeting affluent clients who hold CBK bonds, but the facility is designed to serve anyone who has invested through the DhowCSD platform and needs access to liquidity. Whether you want to reinvest in another opportunity or handle personal expenses, this facility provides the flexibility to use your funds as you see fit.
The DhowCSD Success Story
The timing of this facility launch aligns perfectly with the explosive growth of the DhowCSD platform. Since its introduction, the platform has transformed how Kenyans access government securities:
- 112% growth in active accounts from July 2023 to August 2024 (45,000 to over 96,000 accounts)
- Individual investors now make up 79% of account holders
- The value held by individuals and non-institutional investors doubled from 7% in June 2023 to 13% in June 2024
These numbers tell a compelling story about Kenya’s evolving investment landscape and the appetite among retail investors for direct access to government securities.
The facility isn’t entirely new; Standard Chartered ran a pilot program earlier this year that received enthusiastic feedback from clients. “The pilot launch earlier this year has been well-received by our clients. A testament that clients value innovation that helps them achieve their financial goals,” Chumba notes.
It’s part of a broader movement toward financial inclusion and democratization in Kenya’s capital markets. By allowing investors to leverage their bond holdings without selling them, Standard Chartered is helping to increase market liquidity and giving individual investors tools that were traditionally available only to institutional players.
The DhowCSD platform has already been credited with enhancing operational efficiency and deepening Kenya’s capital markets. Now, with products like this lending facility building on that foundation, Kenyan investors have even more reason to participate in government securities.
If you’ve been hesitant to invest in government bonds because of liquidity concerns, this facility addresses that pain point directly. You no longer have to choose between earning regular returns from your bonds and having access to cash when you need it. The flexibility of the overdraft structure also means you’re not locked into rigid repayment schedules that characterize traditional loans.
Standard Chartered has created a bridge between savings, liquidity, and long-term investment. This empowers investors to access capital when needed, without compromising the growth of their investment portfolios.
→ For more information about the facility, eligible clients can contact Standard Chartered Bank directly or visit their nearest branch.
#Standard Chartered Bank #Bond
CEO & Co-Founder, Abojani Investment
Robert Ochieng is a visionary entrepreneur and the co-founder of Abojani Investment, a leading financial education platform in Kenya that has empowered over 20,000 Africans to embark on their investment journeys. As CEO, he has demonstrated an unwavering commitment to financial literacy, successfully demystifying money and investments and making them accessible and relevant to individuals from all walks of life.
Running Thriving Investment Communities
Robert’s influence extends well beyond Abojani Investment’s core offerings. He has actively fostered a sense of community by running investment forums and groups with a vast following of over 300,000 Africans. These communities provide a safe space for individuals to exchange ideas, share experiences, and support each other on their investment journeys.
Vision for the Future
As co-founder of Abojani Investment, Robert envisions a financially empowered Africa. He strives to expand the reach of his financial education initiatives, enabling millions more to gain the knowledge and confidence needed to achieve their financial goals. His vision is to create a society where every individual has the tools and understanding to build lasting wealth and prosperity.
Professional Background
Robert Ochieng is a highly accomplished CEO at the helm of Abojani Investment, an investment and advisory firm in Kenya. He is a seasoned professional with over 14 years of experience in IT, Finance, and leadership.
His career includes key roles at prominent institutions such as Equity Bank, Gulf African Bank, Guaranty Trust Bank (GTBank) and Airtel.
Robert’s expertise has also been sought after by the National Treasury for consultancy on planning and budgeting systems, showcasing his exceptional knowledge and skills in the field. Passionate about driving meaningful conversations and collaborations between academia, industry, and the public sector, Robert actively engages in research projects focusing on digital transformation within the financial services sector. With his visionary leadership and strategic insights, Robert Ochieng continues to make a significant impact in the business world.
