The Central Bank of Kenya (CBK) has announced a Sh20 billion government bond offer aimed at raising funds for budgetary support.
In a notice published on Tuesday, April 7, the CBK said it is offering investors two long-term bond options: a re-opened 30-year Savings Development Bond and a new 30-year Fixed Coupon Treasury Bond.
“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.
The first instrument, SDB1/2011/030, is a reopened Savings Development Bond carrying a coupon rate of 12 percent. The bond has 14.9 years remaining to maturity and is scheduled to mature on January 21, 2041.
The second offer is a new bond, FXD1/2026/030, which carries a slightly higher coupon rate of 12.5 percent. It will mature on March 13, 2056, giving investors a full 30-year investment horizon.
Both bonds will attract a 10 percent withholding tax on interest payments.
The offer is structured to cater to both retail and institutional investors. For non-competitive bids, the minimum investment is Sh50,000, while competitive bids require a minimum of Sh2 million.
Non-competitive bids are largely suited for retail investors who prefer allocation at the average accepted yield, while competitive bids are typically targeted at institutional and large-scale investors.
The auction will run from April 7 to April 15, 2026, with bids required to be submitted by 10am on April 15, 2026. CBK will announce the tender results on the same day, while settlement is scheduled for April 20, 2026.
Successful bidders will receive their payment key and the exact allocation amount through the CBK DhowCSD Investor Portal or mobile application on April 17, 2026.
The regulator warned that investors who fail to honour payments after successful allocation risk being suspended from participating in future government securities transactions.
Secondary trading of the bonds will begin on April 20, 2026, with transactions allowed in multiples of Sh50,000.
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 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.
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