The Central Bank of Kenya (CBK) has invited investors to participate in the May 2026 Treasury bond auction aimed at raising Sh80 billion to support the government’s budgetary needs.
The offer period opened on April 23 and will run until May 6, 2026. In the latest issue, CBK has reopened three fixed-coupon Treasury bonds with varying tenors and coupon rates to cater to both medium- and long-term investors.
The first bond, FXD1/2012/020, has a remaining tenor of 6.6 years and carries a coupon rate of 12.000 percent. It is set to mature on November 1, 2032.
The second bond, FXD1/2019/020, offers a remaining tenor of 13 years at a coupon rate of 12.873 percent and will mature on March 21, 2039.
The longest-dated paper on offer, FXD1/2021/025, has 20.1 years to maturity and carries a coupon rate of 13.924 percent. It will mature on April 9, 2046.
All three bonds attract a withholding tax of 10 percent on interest income.
CBK has outlined clear participation guidelines for investors. The minimum non-competitive bid amount is Sh50,000, while the maximum is capped at Sh50 million per Central Securities Depository (CSD) account per tenor.
Competitive bids, which are typically submitted by institutional investors and high-net-worth individuals, require a minimum investment of Sh2 million per CSD account per tenor.
The deadline for submission of bids is Wednesday, May 6, 2026, at 10:00 am. The auction will be conducted later that day.
Successful bidders are required to obtain their payment key and amount payable from the CBK DhowCSD Investor Portal or mobile application under the transactions tab on Friday, May 8, 2026.
Secondary trading in multiples of Sh50,000 will commence on Monday, May 11, 2026, for all three bonds, enhancing liquidity in the domestic debt market.
The May 2026 bond issue comes as the government continues to rely on domestic borrowing to finance its fiscal operations while offering investors an opportunity to secure stable, long-term returns in the fixed income market.
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