CBK Invites Kenyans to Invest in Ksh20 Billion Treasury Bonds from Ksh50,000
The Central Bank of Kenya (CBK) has invited Kenyans and interested local and international investors to bid for reopened and new 30‑Year fixed‑coupon treasury bonds valued at Ksh 20 billion.
The bond sale invites both individual and institutional investors to participate, with a minimum investment requirement of just Ksh 50,000.
CBK, in a notice published on Tuesday, April 7, announced that the bonds are meant for budgetary support
“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.
For investors looking for medium-term returns, the 14.9-year bond (SDB1/2011/030) with a coupon rate of 12.00 percent could be a good choice.
However, long-term investors can choose the 30-year bond (FXD1/2026/030), which offers a 12.5000 percent coupon rate.
CBK Invites Bids for Reopened and New 30-Year Treasury Bonds
The CBK will accept both 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 bond accrues interest (AI) of KSh 2.3077 per KSh 100. Withholding Tax is computed on clean prices.
Example: If quoted yield is 12.0000%, dirty price is the clean price (KES 99.9587) plus AI (Ksh 2.3077), which equals K 102,2664
On the other hand, the minimum bid amount for competitive bids is Ksh2 million per CSD account per tenor.
The bond attracts an Accrued Interest (AI) of Ksh 0 per Ksh 100. Withholding Tax is computed on clean prices.
Example: If quoted yield is 12.5000%, dirty price is the clean price (KES 100) plus AI (Ksh 0), which equals Ksh 100.
Both bonds will be subject to a 10 percent withholding tax.
How to Bid
The sale period is set from Tuesday, April 7, 2026, to April 15, 2026. The submission deadline is 10:00 AM on Wednesday, 15th April 2026, which is also the auction day.
The settlement date is set for April 20, 2026.
Treasury bond bids must be submitted to the Central Bank of Kenya electronically via CBK DhowCSD or TMD.
Payments
All successful bidders should obtain the payment key and amount payable from the CBK DhowCSD Investor Portal/App under the transactions tab on Friday, 17/04/2026, for SDB1/2011/030 and FXD1/2026/030.
CBK warned 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.
Secondary trading in multiples of Ksh 50,000.00 commence on Monday, 20/04/2026 for SDB1/2011/030 and FXD1/2026/030,
The Central Bank will rediscount bonds as a last resort, at 3% above the prevailing market yield or coupon rate, whichever is higher.
Rediscount instructions should be sent from the CBK DhowCSD investor portal/app, under the Instructions tab, by selecting Create new and the Rediscount.
The bonds may be reopened at a future date and will be listed on the Nairobi Securities Exchange.
The bonds qualify for the statutory liquidity ratio requirements for Commercial Banks and Non-Bank financial institutions, as stipulated in the Banking Act, CAP 488, of the laws of Kenya.
Pledge
Investors can pledge Government Securities as collateral to access loans from regulated financial institutions.
A pledge not canceled at least five days before the securities mature will result in securities automatically settling to the lender’s account.
For inquiries, bidders can contact the CBK Financial Markets Department at 2860000 or through its branches in Mombasa, Kisumu, Eldoret, Nyeri, Meru, Kisii, and Nakuru.
Alternatively, they can engage commercial banks, investment banks, stockbrokers, email, or visit the CBK website.
