CBK reopens three long-term treasury bonds to raise Sh60 billion

The Central Bank of Kenya (CBK) has announced the reopening of three long-term fixed-coupon treasury bonds as part of efforts to raise Sh60 billion for government budgetary support.

In a statement issued on Tuesday, August 26, 2025, the CBK said the reopened bonds are FXD1/2018/020, FXD1/2022/025, and SDB1/2011/030.

Investors will have an opportunity to bid on maturities of 20, 25, and 30 years, making them some of the longest-tenor instruments in the local debt market.

The 20-year bond (FXD1/2018/020), which now has 12.5 years left to maturity, carries a coupon rate of 13.200%.

The 25-year paper (FXD1/2022/025) has 22.2 years remaining and offers a coupon of 14.1880%.

Meanwhile, the 30-year infrastructure bond (SDB1/2011/030) still has 15.5 years to maturity and comes with a coupon rate of 12.000%.

According to CBK, the two longer-dated bonds FXD1/2018/020 and FXD1/2022/025 are expected to raise a combined Sh40 billion.

The sale period for these runs from August 26 to September 17, 2025, with bids required by 10:00 a.m. on Wednesday, September 17.

The auction will take place on the same day, and settlement will be finalized on September 22.

On the other hand, the 30-year infrastructure bond, SDB1/2011/030, is targeting Sh20 billion. Sales for this tranche are open until September 3, with bids closing at 10:00 a.m. on the same day.

The auction will also be conducted on September 3, while settlement will take place on September 8, 2025.

For investors, CBK has outlined participation rules. Non-competitive bids will be accepted between a minimum of Sh50,000 and a maximum of Sh50 million. Competitive bids, however, require at least Sh2 million per Central Securities Depository (CSD) account per tenor.

Successful bidders will be required to obtain their payment details through the CBK how CSD Investor Portal or mobile app. Payments are due on September 5 for the 30-year bond and on September 19 for the two other bonds.

Secondary trading in the reopened securities will begin on September 8 for the 30-year paper and on September 22 for the 20-year and 25-year bonds. Trading will be conducted in multiples of Sh50,000.

CBK also noted that rediscounting will only be allowed as a last resort, at a rate 3% above the prevailing market or coupon rate, whichever is higher. Such requests must be made in writing to the Bank.

It further indicated that the reopened bonds may be reissued in the future, depending on market conditions and government funding needs.

The move underscores CBK’s continued reliance on the domestic debt market to plug fiscal gaps while giving investors a chance to lock into long-term securities with attractive coupon rates.