The Central Bank of Kenya (CBK) has reopened two long-term fixed-coupon Treasury bonds in a bid to raise Sh40 billion for government budget financing.
In a prospectus released on Tuesday, July 14, the CBK invited investors to bid for the reopened 20-year and 25-year Treasury bonds.
The offer, which opened on July 14, will run until July 22, with bids required by 10 a.m. on the closing date. The auction will also be conducted on July 22, with successful investors expected to settle their purchases on July 27.
The first bond, FXD1/2019/020, carries a coupon rate of 12.8730 percent and has 12.8 years remaining before its maturity on March 21, 2039.
The second bond, FXD1/2022/025, offers a higher coupon of 14.1880 percent and has 21.4 years left to maturity, with redemption due on September 23, 2047.
The proceeds from the issue will be used to support the government’s budget, continuing the State’s reliance on the domestic debt market to bridge financing needs while reducing exposure to external borrowing risks.
CBK said retail investors can participate through non-competitive bids, with investments ranging from a minimum of Sh50,000 to Sh50 million.
Competitive bids will require a minimum investment of Sh2 million for each tenor per Central Securities Depository (CSD) account.
Investors whose bids are accepted will be required to obtain their payment keys and payable amounts through the CBK DhowCSD Investor Portal or mobile application on July 24 before completing settlement three days later.
“All successful bidders should obtain the payment key and amount payable from the CBK DhowCSD Investor Portal/App under the transactions tab on Friday, 24-Jul-2026, for FXD1/2019/020 and FXD1/2022/025,” read part of the statement.
The securities will attract a 10 percent withholding tax and will be listed on the Nairobi Securities Exchange (NSE) upon issuance, enabling secondary market trading from July 27 in multiples of Sh50,000.
CBK further noted that the two bonds qualify for statutory liquidity ratio requirements under the Banking Act.
