The Central Bank of Kenya (CBK) has invited Kenyans to invest in Treasury bonds worth Ksh 50 billion, days after rejecting Ksh 228.4 billion—about 70.7 percent of bids—in the August infrastructure bond auction.
CBK, in a statement issued on Tuesday, August 19, said the loan is being raised through two infrastructure bonds, IFB1/2018/015 and IFB1/2022/019.
Investors will be served on a first-come, first-served basis, according to the Central Bank.
“Central Bank of Kenya is pleased to offer eligible investors an opportunity to participate in a Tap Sale of the above Treasury Bonds whose details are as in the prospectus issued value date 18/08/2025,” the regulator said.
“The Tap Sale will be offered on a first come first- served basis.”
CBK Reopens Bonds to Raise Ksh 50B: How to Bid
The sale will run from Tuesday, August 19, to Thursday, August 21, 2025, or until the Ksh 50 billion target is reached, whichever comes first.
Bids shall be priced at the average rate of the accepted bids for the Treasury Bond auction value dated 18/08/2025 and adjusted for accrued interest
Those who invest will earn interest of 12.5% for IFB1/2018/015 and 12.965% for IFB1/2022/019.
Also Read: CBK Sets New Standard Rate for All Bank Loans
At the same time, CBK set attractive adjusted average prices for the reopened infrastructure bonds, giving investors an opportunity to purchase them at a discount.
According to the bond prospectus, the adjusted average price for the 15-year bond, IFB1/2018/015, is Ksh 99.3937, while the 19-year bond, IFB1/2022/019, is priced at Ksh 94.8458.
This means that for every Ksh 100 worth of the bonds’ face value, investors will pay Ksh 99.39 and Ksh 94.85, respectively.
The results will be announced on Thursday, 21st August 2025, at 2 p.m. or upon attainment of quantum, whichever comes first
Payments and settlement must be made by August 25, 2025, at 2 p.m.
Investors should obtain details of amounts payable for successful bids from the DhowCSD Investor Portal/App under the transactions tab on Friday, 22nd August 2025.
Also Read: CBK Explains Why Kenyan Shilling Has Not Fallen for Over 11 Month
CBK Rejects Majority of Bids in Oversubscribed August Infrastructure Bond Sale
This comes after the government faced overwhelming demand in its August reopening of two infrastructure bonds, receiving bids worth Ksh 323.4 billion against a target of KES 90 billion. This represented a 259.3 percent oversubscription.
The 15-year bond (IFB1/2018/015), with 7.5 years left to maturity, attracted the bulk of interest, accounting for 66.8 percent of total bids. The 19-year paper (IFB1/2022/019), with 15.6 years left, drew the balance.
Despite the heavy bidding, CBK accepted just Ksh 95.0 billion, equivalent to 29.3 percent of offers, and rejected Ksh 228.4 billion.
Accepted bids carried lower yields than those sought by the market, averaging 12.9934 percent for the 15-year bond and 13.9991 percent for the 19-year bond.
This was below the market-weighted averages of 13.53 percent and 14.24 percent, respectively.
Non-competitive bids—those submitted without specifying an interest rate—accounted for Ksh 64.1 billion, or 67.4 percent of the total accepted amount.
The proceeds were largely applied to redemptions worth Ksh 94.6 billion, meaning the government used nearly all of the funds raised to repay maturing obligations. Net new borrowing amounted to just Ksh375.6 million.
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