Kenya: Announcement of new link

Clearstream¹ informs clients that effective

29 June 2026

it will be expanding its domestic market coverage by launching its 60^th link to Kenya for the purpose of settling and safekeeping Kenyan government bonds, treasury bills and infrastructure bonds.

Clearstream will open its own omnibus account with the Central Bank of Kenya, DhowCSD. The link will be indirect via Standard Chartered Bank Kenya Limited (SCB), who will act as Clearstream’s local custodian and cash correspondent bank for Kenyan Shilling (KES).

Local Custodian and Cash Correspondent details

Standard Chartered Bank Kenya Limited
48 Westlands Road, 30003-00100, Nairobi, Kenya

Depository Code: KY
Swift address: SCBLKENXXX

Clearstream’s securities account number with SCB: 136331000001
Clearstream Account Name with SCB: Clearstream Banking S.A.
Clearstream KES cash account number with SCB: 0105089081400

Clearstream - eligible security types

• Government Bonds issued by the Central Bank of Kenya.
• Treasury Bills.
• Infrastructure Bonds.

Investor eligibility

The Clearstream Kenya link is open to both residents and non-residents of Kenya.

There are no pre-requisites or specific onboarding requirements for clients to access this market via Clearstream.

Holding restrictions

There are no holding restrictions applicable to Kenyan securities held via Clearstream.

Settlement services

Bridge transactions are not possible.

Internal settlement for Kenyan securities is allowed in Clearstream against any eligible settlement currency.

External (domestic) settlement is possible against payment in KES currency. Free of Payment settlement is only allowed for portfolio transfers (No Change of Beneficial Ownership).

Clearstream can support clients who wish to participate in the Kenyan primary market for government bond auctions by facilitating the sending of bids and receiving bid results to / from the Central Bank of Kenya.

Settlement deadlines for domestic trades

Settlement times in Central European Time (CET)

29 March 2026 - 24 October 2026

a. Free of Payment instructions corresponding to portfolio transfers (no change in Beneficial Ownership) are allowed but can take between 2-4 weeks to be completed since they are subject to approvals from the regulators (Nairobi Stock Exchange and Capital Markets Authority) before they can be processed and settled at the DhowCSD.

25 October 2026 – 27 March 2027

a. Free of Payment instructions corresponding to portfolio transfers (no change in Beneficial Ownership) are allowed but can take between 2-4 weeks to be completed since they are subject to approvals from the regulators (Nairobi Stock Exchange and Capital Markets Authority) before they can be processed and settled at the DhowCSD.

Settlement times in East Africa Time (EAT)

All year

a. Free of Payment instructions corresponding to portfolio transfers (no change in Beneficial Ownership) are allowed but can take between 2-4 weeks to be completed since they are subject to approvals from the regulators (Nairobi Stock Exchange and Capital Markets Authority) before they can be processed and settled at the DhowCSD.

Cash related information

Kenyan Shilling (KES) will become an eligible settlement currency within Clearstream from the effective date of this announcement.

Cash correspondent bank details

Cash deadlines

29 March 2026 - 24 October 2026

25 October 2026 – 27 March 2027

Foreign exchange (FX) services for KES are available to clients.

Clients should take note of the strict need to ensure that their accounts are pre-funded for any purchases (RVP trades) on SD-1, as per the above-mentioned settlement timings, and take this into consideration when arranging to book their FX.

Overdrafts

Overdrafts in Kenyan Shilling are not supported.

Asset services

The standard services of asset servicing for mandatory corporate events, including income and redemption payment processing, will be available. Income and redemption payments will be made in KES and can be converted into another currency for repatriation upon request.

Tax

Clearstream will not provide Tax services for Kenya.

Withholding tax (WHT) is retained at source by the Central Bank of Kenya and applied as follows:

• Government bonds with a tenure of 10 years and above: 10% WHT.
• Government bonds with a tenure up to 10 years: 15% WHT.
• Infrastructure bonds: 0% WHT.

Tax reclaim is not a common practice in the Kenyan market.

Further information

The Market Link Guide - Kenya will be available on our website on the effective date.

For further information, clients may contact Clearstream Client Services or their Relationship Officer.

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1. Clearstream refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Europe AG (for Clearstream Europe AG clients using 6-series accounts), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.
Clearstream Banking S.A. is registered as an Australian CS (Overseas) Facility, under subsection 824B(2) of the Corporations Act 2001, with registration number ARBN 675 244 783.