The Central Bank of Kenya (CBK) has reopened two long-term Treasury bonds worth a combined KSh100 billion, giving investors an opportunity to invest in government securities with coupon rates of up to 12.873 per cent.
The two fixed-coupon bonds are being offered at KSh50 billion each and will be used to support the government’s budget.
The first bond, FXD3/2019/015, carries a coupon rate of 12.34 per cent and matures on July 10, 2034.
The second, FXD1/2019/020, has a coupon rate of 12.873 per cent and matures on March 21, 2039.
Both securities are subject to a 10 per cent withholding tax.
When is the deadline?
The sale opened on September 24, 2026, and investors have until 10am on September 30 to submit their bids.
The auction will also be conducted on September 30, while successful bids will be settled on October 5, 2026.
CBK will use a multi-price auction, under which successful bidders are allocated securities at the prices they bid and that are accepted during the auction.
How much can investors invest?
The bonds are available through the CBK’s DhowCSD platform.
Non-competitive bids must be at least KSh50,000 and cannot exceed KSh50 million.
For competitive bids, investors must invest at least KSh2 million per Central Securities Depository (CSD) account for each bond tenor.
Participation requires an active DhowCSD account.
Successful investors can obtain details of the amount payable and their payment key through the DhowCSD Investor Portal or mobile application.
How long do the bonds pay interest?
The two securities have different remaining periods to maturity.
The 12.34 per cent bond has approximately 7.8 years remaining and will mature in July 2034. Its interest payments begin in January 2027 and continue according to the payment schedule until maturity.
The 12.873 per cent bond has approximately 12.5 years remaining and will mature in March 2039. Its interest payments begin in April 2027 and continue until maturity.
Investors should note that the coupon rate is the stated annual interest rate on the bond. The actual return for an investor who buys through the auction or later in the secondary market can differ depending on the price paid.
Can investors sell the bonds before maturity?
Yes. After settlement on October 5, the bonds will be available for secondary trading in multiples of KSh50,000.
Both securities will also be listed on the Nairobi Securities Exchange, allowing investors to trade them after issuance.
CBK has also retained the option to reopen the bonds at a later date.
Can the bonds be used as collateral?
Government securities can be pledged as collateral when investors seek loans from regulated financial institutions.
CBK says a pledge that is not cancelled at least five days before a bond’s maturity will result in the securities being automatically settled into the lender’s account.
The bonds also qualify for statutory liquidity ratio requirements applicable to commercial banks and non-bank financial institutions under the Banking Act.
What investors should consider
Before placing a bid, investors should review the official CBK prospectus and consider the bond’s maturity period, coupon rate, purchase price, applicable taxes and their need for liquidity.
A Treasury bond provides scheduled interest payments and repayment of principal at maturity, subject to the terms of the security. However, investors who sell before maturity may receive more or less than the amount they initially invested depending on prevailing market prices.
The current offer closes at 10am on September 30, 2026, meaning investors intending to participate must submit their bids before the deadline.
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