CBK Invites Kenyans to Invest in KSh50 Billion Treasury Bonds Paying Up to 12.5%

In a prospectus released on October 23, 2026, the CBK invited bids for the 15-year and 30-year fixed-coupon Treasury bonds, with the sale running from October 23 to November 4, 2026.

“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,” CBK said.

The reopened bonds are FXD3/2019/015, which carries a coupon rate of 12.34 per cent, and FXD1/2026/030, which offers 12.50 per cent.

The 15-year bond has approximately 7.8 years remaining until maturity and is due on July 10, 2034. The 30-year bond has approximately 29.5 years remaining and will mature on March 13, 2056.

Both bonds attract a 10 per cent withholding tax on interest income.

The sale closes on November 4, 2026, at 10am, with the auction scheduled for the same day. Successful bidders will settle their payments on November 9, 2026.

Investors must have active DhowCSD accounts to participate in the sale.

According to the prospectus, non-competitive bids must be between KSh50,000 and KSh50 million. Competitive bids must be at least KSh2 million per CSD account for each bond tenor.

The CBK will use a multi-price auction system, under which successful competitive bidders may receive different yields depending on their accepted bids.

The central bank reserves the right to accept applications in full or in part, allocate the bonds on a pro-rata basis or reject applications entirely.

Successful bidders can obtain their payment keys and the amounts payable through the CBK DhowCSD Investor Portal or mobile application under the transactions tab on Friday, November 6, 2026.

“All successful bidders should obtain the payment key and amount payable from the CBK DhowCSD Investor Portal/App under the transactions tab on Friday, 6-Nov-2026, for FXD3/2019/015 and FXD1/2026/030,” the bank added.

Also Read: CBK Report Reveals Why Many Kenyans Are Still Struggling to Find Jobs

The CBK has published coupon payment dates for both bonds, allowing investors to identify when interest payments are scheduled.

For the 15-year bond, FXD3/2019/015, the listed payment dates begin on January 18, 2027, followed by July 19, 2027. Subsequent payments are scheduled approximately every six months, with the final listed payment falling on July 10, 2034, the bond’s maturity date.

For the 30-year bond, FXD1/2026/030, the first listed coupon payment is scheduled for April 19, 2027, followed by October 18, 2027. Payments are then scheduled approximately every six months through March 13, 2056, when the bond matures.

The coupon rate is the annual interest rate paid on a bond’s face value. However, an investor’s actual return may differ depending on the price paid for the bond at auction or in the secondary market.

Investors can also pledge government securities as collateral to access loans from regulated financial institutions.

The CBK states that a pledge that has not been cancelled at least five days before the securities mature will result in the securities automatically settling into the lender’s account.

This means investors using their bonds as collateral should pay attention to maturity dates and ensure any pledge cancellation is completed within the prescribed period.

Investors who want to sell their bonds before maturity can trade them in the secondary market. Trading in the reopened bonds will begin on November 9, 2026, in multiples of KSh50,000.

The bonds will also be listed on the Nairobi Securities Exchange (NSE), allowing investors to buy or sell them through the secondary market.

Also Read: CBK Reveals New Dollar Exchange Rate as Kenya Shilling Holds Steady

Investors seeking further information can contact the CBK Financial Markets Department on 2860000 or visit the central bank’s branches in Mombasa, Kisumu and Eldoret.

They can also seek assistance at the CBK currency centres in Nyeri, Meru, Kisii and Nakuru, or through commercial banks, investment banks and stockbrokers.

Enquiries can be sent to [email protected], while additional information is available on the CBK website at www.centralbank.go.ke.

The central bank may reopen the bonds again at a future date. It also offers a rediscounting facility as a last resort, at a rate set at three percentage points above the prevailing market yield or coupon rate, whichever is higher.

The bonds qualify towards statutory liquidity ratio requirements for commercial banks and non-bank financial institutions, subject to the provisions of the Banking Act.

Follow our WhatsApp Channel and X Account for real-time news updates.

Annah Nanjala Wekesa is a journalist at The Kenya Times, with a passion for crafting news-worthy stories that leave a lasting impact. She holds a Bachelor of Arts in Communication and Media from Kisii University. She has honed her skills in the art of storytelling and journalism. Her passion lies in the art of storytelling that resonates with audiences, driving a commitment to delivering news-worthy stories through the lens of integrity and precision. She can be reached at [email protected]

Related Posts Safaricom Explains Why Some Users May Never Get Higher Fuliza and M-Shwari Limits October 23, 2026 Anxious Wait as WMO Issues New El Niño Forecast Extending Into 2027 October 23, 2026 Kenya Finally Sends Its Citizen Back to US for Sentencing After 13 Years on the Run October 23, 2026 Gunfire Intensifies as Kenya Feels Ethiopia’s War Heat October 23, 2026 Leave a Reply Cancel replyYour email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

Please enter your username or email address to reset your password.