The Central Bank of Kenya (CBK) has invited investors to bid for KSh50 billion worth of reopened Treasury bonds.
In a prospectus released on Tuesday, October 6, CBK , acting as the fiscal agent for the Government of Kenya, said the bonds are being offered to support the government’s budgetary needs.
“The Central Bank of Kenya, acting in its capacity as fiscal agent for the Republic of Kenya, invites bids for the above bonds,” CBK said in the prospectus.
The bonds will be offered through a multi-price auction, opening on Tuesday, October 6, 2026, and closing on Wednesday, October 14.
CBK KSh50 Billion Treasury Bond Sale Opens With 12.5% Interest Rate
The offer comprises two bonds, including SDB1/2011/030, which carries a 12 per cent coupon rate and matures on January 21, 2041.
Meanwhile, the second bond, FXD1/2026/030, has a coupon rate of 12.5 per cent and will mature on March 13, 2056.
Investors must have active DhowCSD accounts to participate in the auction.
CBK Sets Minimum Investment for Treasury Bond Bids
Non-competitive bids will range from a minimum of KSh50,000 to a maximum of KSh50 million, while competitive bids will require a minimum investment of KSh2 million per CSD account for each tenor.
The deadline for submitting bids is 10am on October 14, with the auction scheduled for October 19, 2026.
CBK said successful bidders can obtain their payment key and the amount payable through the CBK DhowCSD Investor Portal or App under the transactions tab on Friday, October 16.
“All successful bidders should obtain the payment key and amount payable from the CBK DhowCSD Investor Portal/App under the transactions tab,” the bank said.
Investors who fail to make the required payments may face restrictions on future participation in government securities.
CBK will determine the amount of bonds allocated to investors after the auction and reserves the right to accept applications in full or in part or reject them altogether.
“The Central Bank reserves the right to accept applications in full or part thereof or reject them in total without giving any reason,” the prospectus states.
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Bonds to Trade on NSE
The reopened Treasury bonds will be available for secondary trading from October 19, the same day the auction is scheduled to settle.
Trading will be conducted in multiples of KSh50,000 for both bonds.
The securities will also be listed on the Nairobi Securities Exchange, giving investors an avenue to trade them after issuance.
CBK said it may also reopen the bonds at a future date, allowing additional amounts to be issued under the same securities.
The bonds qualify for statutory liquidity ratio requirements for commercial banks and non-bank financial institutions in accordance with the Banking Act.
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When Investors will Receive Interest
The bonds will pay interest periodically over their respective terms.
For SDB1/2011/030, coupon payments begin in February 2027 and continue every six months until the bond matures in January 2041.
The FXD1/2026/030 bond coupon payments begin in April 2027 and continue periodically until the bond matures in March 2056.
Investors buying the first bond should also account for accrued interest. CBK has indicated accrued interest of KSh2.3077 per KSh100 for SDB1/2011/030.
For example, at a quoted yield of 12 per cent, the clean price is KSh99.9587 per KSh100. After adding accrued interest of KSh2.3077, the resulting dirty price is KSh102.2664.
For FXD1/2026/030, the accrued interest is currently KSh0 per KSh100. At a quoted yield of 12.5 per cent, the clean and dirty prices are both KSh100.
Investors who need to exit their holdings before maturity can request rediscounting through the CBK DhowCSD Investor Portal or App.
However, CBK describes rediscounting as a last-resort option. The rate will be set at 3 per cent above the prevailing market yield or coupon rate, whichever is higher.
CBK said investors seeking further information can contact its Financial Markets Department or its branches and currency centres across the country.
Investors can also obtain assistance through commercial banks, investment banks and stockbrokers.
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