The Central Bank of Kenya (CBK) has opened a Sh100 billion Treasury bond sale, giving investors an opportunity to buy into two long-term fixed-rate government securities maturing in 2034 and 2039.
The two reopened bonds are being offered at Sh50 billion each, with the first carrying a coupon rate of 12.34 per cent and maturing on July 10, 2034. The second has a coupon rate of 12.873 per cent and is due on March 21, 2039.
“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 said in the prospectus.
The first security, identified as FXD3/2019/015, has approximately 7.8 years remaining to maturity. The second, FXD1/2019/020, has about 12.5 years left before maturity.
CBK said proceeds from the bond sale will be used to support the Government’s budgetary requirements. Both securities are subject to a 10 per cent withholding tax, with interest payments to investors being made in line with the coupon schedules set out in the prospectus.
For the 2034 bond, interest payments will run from January 2027 through to its maturity in July 2034. Investors in the 2039 security will begin receiving coupon payments in April 2027, with payments continuing until the bond matures in March 2039.
The offer opened on September 24, 2026, and will close on September 30, with investors required to submit their bids by 10am on the closing date. The auction will also be conducted on September 30, while successful bids will be settled on October 5.
“The Period of Sale is 24-Sep-2026 to 30-Sep-2026,” and the “Bid Submission Deadline” is “30-Sep-2026, by 10.00 am,” CBK stated.
The auction will use a multi-price allocation method, under which successful investors will receive the securities at the prices specified in their accepted bids.
For non-competitive bids, investors can subscribe for amounts starting from Sh50,000 up to a maximum of Sh50 million. Competitive bids, meanwhile, require a minimum investment of Sh2 million per Central Securities Depository (CSD) account for each bond tenor.
The offer is open to investors with active DhowCSD accounts. Those whose bids are successful will be required to obtain their payment key and confirm the amount payable through the CBK DhowCSD Investor Portal or mobile application.
Trading of the two bonds in the secondary market will commence on October 5, following settlement. Secondary market transactions will be conducted in multiples of Sh50,000.
CBK has also retained the option of reopening either or both securities at a later date, providing an avenue for additional issuance depending on market and financing requirements.
The bonds also qualify for use in meeting statutory liquidity ratio requirements by commercial banks and non-bank financial institutions under the Banking Act.
Beyond their investment potential, holders of the securities can use government bonds as collateral when seeking credit from regulated financial institutions.
“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.”
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