The Central Bank of Kenya (CBK) has invited Kenyans and investors to participate in the re-opened sale of two long-term Treasury bonds as the government seeks to raise Ksh60 billion for budgetary support.
According to a prospectus issued by the CBK on Tuesday, June 9, the offer comprises the reopened FXD1/2018/020 and FXD1/2021/025 Treasury bonds.
“The Central Bank of Kenya, acting in its capacity as fiscal agent for the Republic of Kenya, invites bids for the above bonds,” the bank said in the prospectus.
The sale period will run from June 9 to June 17, 2026.
The 20-year bond, FXD1/2018/020, carries a coupon rate of 13.20 percent and will mature on March 1, 2038.
Meanwhile, the 25-year bond, FXD1/2021/025, offers a coupon rate of 13.924 percent and will mature on April 9, 2046.
The auction is scheduled for June 17, 2026, with successful investors expected to settle payments on June 22, 2026.
CBK stated that the funds raised will be used for budgetary support, providing the government with additional financing as it implements its expenditure plans.
Individual investors can participate through non-competitive bids, with a minimum investment of Ksh50,000 and a maximum of Ksh50 million.
Competitive bids require a minimum investment of Ksh 2 million per Central Securities Depository (CSD) account, per tenor.
The bonds carry a 10 percent withholding tax and qualify for statutory liquidity ratio requirements for both commercial banks and non-bank financial institutions.
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How to Bid
Treasury bond bids must be submitted to the Central Bank of Kenya electronically via CBK DhowCSD or TMD.
CBK stated that successful bidders should obtain their payment key and the amount payable via the CBK DhowCSD Investor Portal or App, under the Transactions tab, on June 19, 2026, for both FXD1/2018/020 and FXD1/2021/025.
Defaulters may be suspended from future investments in government securities.
The Central Bank reserves the right to accept applications in full or in part, or to reject them entirely without providing a reason.
Secondary trading in multiples of KSh50,000 will commence on June 22, 2026, for both bond issues.
CBK Outlines Trading, Rediscount and Collateral Rules
The Central Bank will rediscount bonds as a last resort at 3 percent above the prevailing market yield or coupon rate, whichever is higher.
Rediscount instructions should be submitted through the CBK DhowCSD Investor Portal or App under the Instructions tab by selecting “Create New” and then the “Rediscount” option.
CBK noted that the bonds may be re-opened at a future date.
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The bonds also qualify for statutory liquidity ratio requirements for commercial banks and non-bank financial institutions as stipulated in the Banking Act.
CBK further noted that the securities will be listed on the Nairobi Securities Exchange (NSE), allowing investors to trade them in the secondary market after issuance.
“The bonds will be listed on the Nairobi Securities Exchange,” the prospectus states.
Investors can pledge government securities as collateral to access loans from regulated financial institutions.
CBK cautioned that a pledge not canceled at least five days before the securities mature will result in the securities automatically settling into the lender’s account.
