The Central Bank of Kenya (CBK) has invited investors to participate in a reopened Treasury bond auction to raise Ksh50 billion to support the budget, with a minimum investment of Ksh50,000.
In a prospectus released on Wednesday, May 12, the CBK said the reopened fixed coupon Treasury bonds include a 15-year bond, FXD3/2019/015, and a 20-year bond, FXD1/2021/020.
“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 part of the prospectus.
The two bonds have remaining maturities of 8.3 years and 15.3 years, respectively.
CBK Reopens 15- and 20-Year Treasury Bonds in Ksh50 Billion Auction
The 15-year bond carries a coupon rate of 12.3400 percent and matures on July 10, 2034, while the 20-year bond carries a coupon rate of 13.4440 percent and matures on July 22, 2041.
CBK said non-competitive bids will range between a minimum of Ksh50,000 and a maximum of Ksh50 million.
Meanwhile, the competitive bids will require a minimum investment of Ksh 2 million per CDS account per tenor.
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How to Bid
According to the Central Bank, the sale period for the 15-year bond runs from May 13 to May 20, 2026, while the 20-year bond will be on sale from May 18 to May 20, 2026.
The auction date and bid submission deadline for both bonds is May 20, 2026, at 10 am, with settlement scheduled for May 25, 2026.
Treasury bond bids must be submitted to the Central Bank of Kenya electronically via CBK DhowCSD or TMD.
“All successful bidders should obtain the payment key and amount payable from the CBK DhowCSD Investor Portal/App under the transactions tab on Friday, 22/05/2026,” CBK stated in the prospectus.
The regulator warned that defaulters could be suspended from future investments in government securities. It also noted that the bonds may be reopened at a future date, depending on market conditions.
Secondary trading in the two Treasury bonds will begin on May 25, 2026, in multiples of Ksh 50,000 through the Nairobi Securities Exchange (NSE).
The Central Bank further noted that investors can use government securities as collateral to access loans from regulated financial institutions.
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CBK Explains Clean Price, Accrued Interest and Dirty Price
Under the pricing table issued by CBK, the clean price for the 15-year Treasury bond at the coupon yield of 12.3400 percent is Ksh99.9605, with accrued interest of Ksh4.2715 per Ksh100, bringing the dirty price to Ksh104.232.
For the 20-year Treasury bond, the clean price at the coupon yield of 13.4440 percent is Ksh99.9465, with accrued interest of Ksh3.8781 per Ksh100, resulting in a dirty price of Ksh103.8246.
This means investors pay not only the quoted market price (clean price) but also the interest that has accumulated since the last coupon payment date.
CBK added that withholding tax on the bonds remains at 10 percent.
For inquiries, please contact the Central Bank of Kenya, Financial Markets Department on 2860000, or visit any of its branches in Mombasa, Kisumu, and Eldoret, or the Currency Centres in Nyeri, Meru, Kisii, and Nakuru.
You may also contact any commercial bank, investment bank, or stockbroker, or send an email to [email protected], or visit the CBK website at www.centralbank.go.ke.
