The Central Bank of Kenya (CBK) has reopened bids for two fixed-coupon Treasury bonds, offering investors the opportunity to participate in government securities from a minimum investment of KSh 50,000.
The bonds, FDX1/2019/020 and FDX1/2022/025, aim to raise KSh 60 billion each to support the government’s budgetary needs.
“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,” the CBK notice stated.
CBK Bond Details and Coupon Rates
The 20-year bond, FDX1/2019/020, has 13.2 years remaining to maturity and offers a coupon rate of 12.873%.
It matures on March 21, 2039, and is subject to a 10% withholding tax on interest income.
The 25-year bond, FDX1/2022/025, has 21.8 years to maturity with a coupon rate of 14.188%, maturing on September 23, 2049.
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It is also subject to a 10% withholding tax. Both bonds will be listed on the Nairobi Securities Exchange and qualify for statutory liquidity requirements for commercial banks and non-bank financial institutions.
Investment Options and Bid Categories
According to the notice, CBK will accept both competitive and non-competitive bids:
- Non-competitive bids: Minimum KSh 50,000; maximum KSh 50 million per Central Securities Depository (CSD) account per tenor.
- Competitive bids: Minimum KSh 2 million per CSD account per tenor.
Additionally, successful bidders must obtain the payment key and amount payable via the CBK DhowCSD Investor Portal/App under the Transactions tab.
“All successful bidders should obtain the payment key and amount payable from the CBK DhowCSD Investor Portal/App under the transactions tab,” CBK stated.
Defaulters may be barred from future investments in government securities.
Key Dates and Trading
- Sale Period: December 9, 2025 – January 7, 2026
- Bid Submission Deadline: January 7, 2026, at 10:00 a.m.
- Auction Date: January 7, 2026
- Settlement Date: January 12, 2026
- Payment Key Access: January 9, 2026
Secondary trading in multiples of KSh 50,000 will commence on January 12, 2026.
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Rediscounting will be available as a last resort at 3% above the prevailing market yield or coupon rate, whichever is higher, through the CBK DhowCSD portal.
Additionally, the Central Bank stated that it reserves the right to accept or reject applications in whole or in part without giving reasons, and the bonds may be reopened in the future.
Investors may also contact CBK’s Financial Markets Department, visit currency centres across Mombasa, Kisumu, Eldoret, Nyeri, Meru, Kisii, and Nakuru, or engage commercial banks, investment banks, stockbrokers, or email [email protected] for more information.
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