CBK reopens Sh50 billion Treasury bonds: how to bid

The Central Bank of Kenya (CBK) has officially reopened two fixed-coupon Treasury bonds worth a combined KSh50 billion. Offering attractive coupon rates of up to 12.50 per cent, the latest government securities offering invites both local and institutional investors to participate in an active debt instrument market.

According to the official prospectus released by the monetary authority, the sale period runs from October 23 to November 4, 2026. The auction is scheduled to take place on the closing date, with successful bidders required to settle their financial commitments by November 9, 2026.

The CBK, acting as the fiscal agent for the Republic of Kenya, is offering two distinct tenors: a 15-year bond and a 30-year bond.

“Central Bank of Kenya, acting in its capacity as fiscal agent for the Republic of Kenya, invites bids for the above bonds whose terms and conditions are as follows,” the CBK stated in its official communication.

The 15-Year Bond (FXD3/2019/015): This security carries a coupon rate of 12.34 per cent. It currently has approximately 7.8 years remaining until its final maturity date on July 10, 2034.

The 30-Year Bond (FXD1/2026/030): Offering a higher coupon rate of 12.50%, this long-term instrument has roughly 29.5 years remaining before it officially matures on March 13, 2056.

Both bonds attract a standard 10 per cent withholding tax levied on interest income.

To participate in the Sh50 billion bond sale, investors must maintain an active DhowCSD account. The Central Bank has outlined distinct parameters for different types of investors:

Non-Competitive Bids: Must range between Sh50,000 and Sh50 million.

Competitive Bids: Must be set at a minimum of Sh2 million per CSD account for each bond tenor.

The CBK operates under a multi-price auction system. Under this framework, successful competitive bidders may receive varying yields depending on the competitiveness of their accepted bids. Furthermore, the central bank retains the authority to accept applications in full or in part, allocate the bonds on a pro-rata basis, or reject applications entirely.

Successful market participants will be notified ahead of settlement. The CBK instructed, “All successful bidders should obtain the payment key and amount payable from the CBK DhowCSD Investor Portal/App under the transactions tab on Friday, 6-Nov-2026, for FXD3/2019/015 and FXD1/2026/030.”

Investors seeking predictable cash flows can review the structured coupon payment dates published by the CBK.

For the 15-year bond (FXD3/2019/015), initial interest payments kick off on January 18, 2027, followed by a subsequent payment on July 19, 2027. Payments will continue semi-annually until the final maturity date of July 10, 2034.

Meanwhile, holders of the 30-year bond (FXD1/2026/030) will receive their first scheduled coupon payment on April 19, 2027, with the second payout due on October 18, 2027. Subsequent payments will recur every six months through March 13, 2056.

While the coupon rate dictates the annual interest paid on a bond's face value, the CBK notes that actual investor returns may vary depending on the acquisition price paid at auction or via secondary markets.

Beyond holding securities to maturity, Kenyan investors can leverage these government bonds as financial assets. The CBK highlights that participants can pledge their securities as collateral to secure loans from regulated financial institutions.

However, investors must exercise caution: any pledge that remains uncancelled at least five days prior to maturity will automatically settle into the lender’s account.

For those wishing to liquidate holdings prior to maturity, secondary market trading begins on November 9, 2026, in multiples of KSh50,000. The bonds will also be officially listed on the Nairobi Securities Exchange (NSE). Additionally, these securities qualify toward statutory liquidity ratio requirements for commercial banks and non-bank financial institutions under the provisions of the Banking Act.

Investors requiring further clarification or assistance regarding the prospectus can reach out directly to the CBK Financial Markets Department.

Inquiries can be directed via email to NDO@centralbank.go.ke, or by calling the main line at 2860000. Physical assistance is also available across CBK branches in Mombasa, Kisumu, and Eldoret, as well as currency centres in Nyeri, Meru, Kisii, and Nakuru, alongside authorized commercial banks, investment banks, and stockbrokers.