CBK Invites Kenyans to Invest in Treasury Bonds with as Low as Ksh 50K

The Central Bank of Kenya (CBK) has announced the reopening of two long-term Treasury bonds, inviting Kenyans to invest in the country’s development agenda with amounts starting from as low as Ksh 50,000.

In a public prospectus released on Friday, September 26, CBK said the bond sale, targeting to raise Ksh 50 billion, is aimed at supporting the government’s budgetary needs for the 2025/26 financial year.

“The 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 notice read in part.

The apex bank outlined the reopening of two fixed-coupon Treasury bonds — one with 7.7 years left to maturity and another with 15.9 years remaining.

Investment Options

For investors seeking medium-term returns, the FXD1/2018/015 bond, which offers a coupon rate of 12.65%, matures in May 2033.

It attracts an Accrued Interest (AI) of Ksh 5.3519 per Ksh 100, with a 10% withholding tax applied on the clean price.

Example: If the quoted yield is 12.6500%, the dirty price is the clean price (Ksh 99.9746) plus AI (Ksh 5.3519), totaling Ksh 105.3265.

For long-term investors, the FXD1/2021/020 bond offers a 13.444% coupon rate and matures in July 2041.

The bond attracts Accrued Interest (AI) of Ksh 2.5854 per Ksh 100, with the same 10% withholding tax on the clean price.

Example: If the quoted yield is 13.4440%, the dirty price is the clean price (Ksh 99.9484) plus AI (Ksh 2.5854), totaling Ksh 102.5338.

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Types of Bids Offered

The CBK will accept non-competitive and competitive bids for the bonds.

For non-competitive bids, an individual or entity can invest up to Ksh 50 million per Central Securities Depository (CSD) account per tenor, with an exemption for State corporations, public universities, and Semi-Autonomous Government Agencies.

The minimum amount for a competitive bid is Ksh 2 million per CSD account per tenor.

Interest earned is subject to a 10% withholding tax, and payments for successful bids must be made through the CBK DhowCSD Investor Portal or App by October 17, 2025.

The sale period runs from September 26 to October 15, 2025, with the auction and bid deadline set for Wednesday, October 15, at 10:00 a.m.

The settlement date is set for October 20, meaning that this is when successful bidders must make payment.

Interest earned is subject to 10% withholding tax, and payments for successful bids must be made through the CBK DhowCSD Investor Portal or App by Friday, October 17, 2025.

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Important Dates

• Sale Period: September 26 – October 15, 2025

• Bid Submission Deadline: Wednesday, October 15, 2025, at 10:00 a.m.

• Auction Date: October 15, 2025

• Settlement Date: October 20, 2025

• Payment Info Access: October 17, via DhowCSD App/Portal

“All successful bidders should obtain the payment key and amount payable from the CBK DhowCSD Investor Portal/App under the Transactions tab on Friday, October 17, 2025,” CBK noted.

Secondary Market and Rediscounting

• Secondary trading for both bonds (in multiples of Ksh 50,000) will commence on Tuesday, October 21, 2025.

• Rediscounting is available as a last resort, at 3% above the prevailing market yield or the coupon rate (whichever is higher). Requests must be sent via email to: [email protected]

CBK has warned that defaulters may be suspended from participating in future government securities offers.

“The Central Bank reserves the right to accept applications in full or in part, or reject them in total without giving any reason,” the bank added.

The bank also noted that the bonds may be reopened at a future date.

For enquiries, please contact the Central Bank of Kenya’s Financial Markets Department on 2860000 or visit its Branches in Mombasa, Kisumu, and Eldoret, or Nyeri, Meru, Kisii, and Nakuru Currency Centers.

One can also contact any Commercial Bank, Investment Bank, Stockbrokers or send an email to [email protected] or visit the CBK website on www.centralbank.go.ke.

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