The Central Bank of Kenya (CBK) has opened an opportunity for Kenyans to invest in government treasury bonds and earn attractive returns of up to 13.4 percent. The April 2026 auction targets both first-time and experienced investors looking for stable, long-term income.
If you are considering investing, here is a clear step-by-step guide on how to participate in the bond auction and what to expect.
Understand the bond options on offer
Before investing, it is important to know what CBK is offering. In this auction, two reopened fixed-coupon treasury bonds are available.
The first is a 15-year bond with a coupon rate of 12.756 percent, maturing in February 2035. The second is a 25-year bond offering a higher return of 13.4 percent, making it ideal for long-term investors.
Both bonds are taxed at a reduced withholding rate of 10 percent, which means you take home more interest compared to other investments taxed at higher rates.
Open a CDS account with CBK
To invest in treasury bonds, you must have a Central Depository System (CDS) account. This account is free and can be opened through the CBK DhowCSD Investor Portal.
You will need a valid national ID or passport, a KRA PIN, and bank account details. Once registered, the CDS account allows you to buy, hold, and manage government securities.
Choose your investment method
CBK provides two ways to invest depending on your experience and financial capacity.
If you are a beginner or retail investor, you can choose non-competitive bidding. This option requires a minimum of KSh 50,000 and allows you to receive the average interest rate determined at the auction.
For more experienced investors, competitive bidding is available. This requires a minimum of KSh 2 million, and you will specify the interest rate you are willing to accept.
Submit your application on time
The bond sale runs from March 23 to April 1, 2026, with the deadline for submitting bids set at April 1 at 10:00 a.m.
Applications are made through the CBK DhowCSD platform, where you select the bond, indicate your investment amount, and submit your bid.
CBK has advised investors to follow instructions carefully, noting that incomplete or incorrect applications may be rejected.
Make payment after allocation
After the auction, successful bidders will receive a notification with payment details via the DhowCSD portal.
“All successful bidders should obtain the payment key and amount payable from the CBK DhowCSD Investor Portal,” CBK stated.
Payments must be made by the settlement date on April 6, 2026. Failure to pay on time may lead to penalties or suspension from future auctions.
Hold or trade your bond
Once allocated, your bond will be credited to your CDS account. You can choose to hold it and earn regular interest payments or trade it on the Nairobi Securities Exchange if you need liquidity.
Additionally, CBK allows investors to use treasury bonds as collateral when applying for loans, making them a flexible financial asset.
Why consider treasury bonds
Treasury bonds are considered low-risk investments since they are backed by the government. They offer predictable returns, making them suitable for long-term financial planning.
With interest rates of up to 13.4 percent, the April 2026 bond auction presents a competitive alternative to Treasury bills and money market funds.
However, investors should also consider their financial goals and investment horizon before committing funds, especially for long-term bonds.
By following the outlined steps, Kenyans can take advantage of this opportunity to grow their savings while supporting government development programmes.
