How to invest in the Central Bank's Sh50 Billion treasury bond reopening

The Central Bank of Kenya (CBK) has officially announced the reopening of two major Treasury bonds aiming to raise a combined total of Sh50 billion to support government budgetary requirements.

The latest issue, detailed in a prospectus released on Tuesday, November 10, 2026, presents a key investment opportunity for both retail and institutional investors looking for secure government-backed returns.

The fresh offering features a mix of a medium-term and a long-term fixed-coupon bond:

The 15-Year Bond (FXD1/2019/015): Carries a coupon rate of 12.857% and has approximately 7.3 years remaining to maturity, coming due on January 9, 2034.

The 30-Year Bond (SDB1/2011/030): Offers a coupon rate of 12.5% with roughly 14.3 years left until its maturity date on January 21, 2041.

Both securities are subject to a 10% withholding tax, standard for government infrastructure and fixed-coupon bonds in Kenya.

Investors looking to participate in the Ksh50 billion auction must adhere to a strict calendar set by the Central Bank:

Sale period opens: Tuesday, November 10, 2026

Bid submission deadline: Wednesday, November 18, 2026, at 10:00 AM

Auction date: Monday, November 23, 2026

Settlement date: Wednesday, November 25, 2026

Successful bidders will be expected to log into their portfolios ahead of time. According to the CBK statement, "All successful bidders should obtain the payment key and amount payable from the CBK DhowCSD Investor Portal/App under the transactions tab on Friday, 20-Nov-2026, for FXD1/2019/015 and SDB1/2011/030."

Secondary trading of the bonds on the Nairobi Securities Exchange (NSE) is scheduled to commence on November 23, 2026, in multiples of Sh50,000. Furthermore, the securities qualify toward statutory liquidity ratio requirements for commercial banks and non-bank financial institutions under the Banking Act.

The CBK continues to champion financial inclusion through its digital Central Securities Depository platform, allowing everyday citizens to participate alongside deep-pocketed institutional investors:

Non-competitive bids: Designed for retail investors, starting at a minimum of Sh50,000 and capped at Ksh50 million per CSD account.

Competitive bids: Require a minimum investment of Sh2 million per CSD account for each bond tenor.

The auction will operate under a multi-price bidding system. The CBK retains the administrative right to allocate bonds in full or on a pro-rata basis, as well as accept or reject any applications outright without needing to provide formal justifications.

To take part in the Treasury bond auction, prospective investors are required to have an active DhowCSD account.

New participants can complete their registration digitally via a mobile phone or internet-enabled computer. The onboarding requirements include:

A valid email address and an active mobile number registered on a Kenyan network.

A valid Kenya Revenue Authority (KRA) PIN and bank settlement account details.

A recent passport-size photograph.

A valid identification document (National ID, Passport, or Alien Card).

The CBK mandates that registration be finalized within seven days. Any applications left incomplete after this window are automatically purged from the system.

Once verified and approved, users receive their login credentials via email to access the DhowCSD platform. Joint accounts are also permitted, provided each individual co-holder registers a personal account first.

For investors requiring liquidity before maturity, the Central Bank provides a rediscounting facility as a last resort. However, utilizing this facility comes at a steep cost, attracting a rate of three percentage points above the prevailing market yield or the bond's coupon rate whichever happens to be higher.

Alternatively, investors can leverage their holdings by using Government Securities as collateral to secure credit lines from regulated financial institutions.

The CBK noted, however, that any security pledge remaining active less than five days before maturity will face an automatic transfer to the lender's account to facilitate clearance.