The Central Bank of Kenya (CBK) has announced a tap sale of Treasury bonds worth Ksh50 billion, inviting interested investors to participate.
The bond sale invites individual and institutional investors to participate, with a minimum investment requirement of just Ksh 50,000.
“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,” read the statement in part.
CBK Invites Kenyans to Invest in Ksh50 Billion Treasury Bonds
For investors looking for medium-term returns, the 12.8-year bond (FXDI/2018/020) with a coupon rate of 13.2 percent could be a good choice.
The bond attracts Accrued Interest (Al) of Ksh 4.3154 per Ksh 100. Withholding Tax of 10 percent is computed on clean prices.
Example: If quoted yield is 13.0000%, dirty price is the clean price (Ksh 101.1795) plus Al (Ksh 4.3154) which equals Ksh. 105.4949.
However, long-term investors can choose the 18-year bond ((FXDI/2018/02) offering a 13.4 percent coupon rate.
The bond attracts Accrued Interest (AI) of Ksh. 1.0308 per Ksh 100. Withholding Tax is computed on clean prices.
Example: If quoted yield is 13.5000%, dirty price is the clean price (Ksh 99.3022) plus Al (Ksh 1.0308) which equals Ksh 101 3330.
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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 Ksh50 million per CSD (Central Securities Depository) account per tenor with an exemption to State corporations, public universities, and Semi-Autonomous Government Agencies.
The smallest amount you can bid for the competitive bid is Ksh2 million per CSD account per tenor.
The period of sale is from Tuesday, June 24, to Wednesday, July 9, 2025, which is also the auction date. The settlement date is set for July 14, 2025
All successful bidders should obtain the payment key and amount payable from the CBK DhowCSD Investor Portal/App under the transactions tab on Friday, July 11, 2025, for FXD1/2018/020 and FXD1/2018/025.
The apex bank stated that defaulters may be suspended from subsequent investment in Government Securities.
The Central Bank reserves the right to accept applications in full or part thereof or reject them in total without giving any reason.
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Secondary trading in multiples of Ksh50,000.00 commence on Monday, July 14, 2025 for FXD1/2018/020 and FXD1/2018/025.
The Central Bank will rediscount bonds as a last resort, at 3% above the prevailing market yield or coupon rate whichever is higher, upon receiving written instructions from investors via the email [email protected].
Key Details of the Treasury Bonds
| Feature | Bond 1 (FXD1/2018/020) | Bond 2 (FXD1/2018/025) |
|---|---|---|
| Tenor | 12.8 years to maturity | 18 years to maturity |
| ISIN | KE5000008325 | KE5000008549 |
| Coupon Rate | 13.2000% (fixed annual interest) | 13.4000% (fixed annual interest) |
| Withholding Tax | 10% | 10% |
| Maturity Date | March 1, 2038 | May 25, 2043 |
| Sale Period | June 24 to July 9, 2025 | June 24 to July 9, 2025 |
| Bid Submission Deadline | July 9, 2025, by 10:00 a.m. | |
| Auction Date | July 9, 2025 | |
| Settlement Date | July 14, 2025 | |
| Target Amount | Ksh 50 billion (combined) | |
| Purpose | Budgetary Support | |
| Non-competitive Bids | Ksh 50,000 minimum; Ksh 50 million maximum | |
| Competitive Bids | Minimum Ksh 2 million per CSD account |
CBK stated that the Bonds may be re-opened at a future date.
For any enquiries, a bidder can contact Central Bank of Kenya, Financial Markets Department on 2860000 or their Branches in Mombasa, Kisumu and Eldoret or Nyeri, Meru, Kisii and Nakuru Currency Centers.
Additionally, one can 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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