The Central Bank of Kenya has reopened two long-term Treasury bonds as the government seeks Sh50 billion for budgetary support. The bonds will offer investors fixed annual coupon rates of 12 per cent and 12.5 per cent.
According to the CBK prospectus, the offer runs from October 6 to October 14, 2026, and investors must submit their bids by 10am on October 14. The auction will also take place on the same day, while settlement is scheduled for October 19.
The reopened securities include SDB1/2011/030, which matures on January 21, 2041, and FXD1/2026/030, which matures on March 13, 2056. Although both are 30 year bonds, the first has about 14.4 years remaining to maturity, while the second has about 29.6 years.
The bonds carry fixed coupon rates of 12 per cent and 12.5 per cent, respectively. However, investors will be subject to a 10 per cent withholding tax on the interest earned.
The CBK is offering both competitive and non competitive investment options. Investors making non competitive bids can invest between Sh50,000 and Sh50 million, while competitive bids require a minimum of Sh2 million per CSD account per tenor.
Only investors with active DhowCSD accounts are eligible to participate. Successful bidders will then obtain their payment key and amount payable through the DhowCSD Investor Portal or App on October 16.
The bonds will also provide investors with opportunities to trade after issuance. Secondary trading will begin on October 19, and transactions will be conducted in multiples of Sh50,000.
CBK said the securities will be listed on the Nairobi Securities Exchange, while they will also qualify for statutory liquidity ratio requirements for commercial banks and non bank financial institutions.
The Central Bank will, however, retain the discretion to accept applications in full or in part. It can also reject applications without giving a reason.
The bonds may also be reopened at a future date, while investors seeking to exit before maturity can use the CBK rediscount facility as a last resort. However, defaulters may be suspended from subsequent investment in government securities.