The Central Bank of Kenya has reopened two fixed-coupon Treasury bonds in a bid to raise Sh 50 billion to support government spending. The reopened papers are FXD1/2018/015 and FXD1/2021/020, which were first issued in 2018 and 2021 respectively. The sale period runs from September 26 to October 15, 2025.
According to the official bond prospectus, the 15-year paper (FXD1/2018/015) has 7.7 years remaining and offers a coupon rate of 12.6500%, while the 20-year paper (FXD1/2021/020) has 15.9 years left with a coupon of 13.4440%.
The Central Bank has set October 15, 2025, at 10 am as the deadline for bid submissions. The auction will take place the same day, with the settlement date set for October 21, 2025.
For those submitting non-competitive bids, the allowed range is between Sh 50,000 and Sh 50 million. Competitive bids require a minimum investment of Sh 2 million per tenor, per CSD (Central Depository System) account.
Successful bidders will be required to retrieve their payment instructions through the CBK DhowCSD Investor Portal or mobile app under the transactions tab by Friday, October 17, 2025. CBK has warned that investors who fail to settle their obligations risk being barred from participating in future government securities offers.
Secondary trading for both bonds will start on October 21, 2025, and will be done in multiples of Sh50,000. CBK has stated that rediscounting will be allowed only under exceptional circumstances, and only at a rate that is 3% above either the market yield or the coupon rate—whichever is higher.
The bonds will offer semi-annual interest payouts. For FXD1/2018/015, the next interest payment will be made on November 17, 2025, while for FXD1/2021/020, the next coupon will be paid on February 9, 2026.
Investors should take note that accrued interest applies on both bonds. FXD1/2018/015 carries accrued interest of Sh5.3519 per Sh100, while FXD1/2021/020 carries Sh 2.5854 per Sh 100. The Central Bank clarified that withholding tax is calculated based on clean prices.
“The Central Bank reserves the right to accept bids in full, in part, or reject them entirely without providing reasons,” the statement reads.
The reopened bonds offer investors a stable, long-term investment option, while also helping the government to meet its financial obligations. With clearly defined coupon structures, investor-friendly bidding terms, and the convenience of the DhowCSD platform, the Central Bank aims to encourage wider participation from both retail and institutional investors.
Investors seeking more information have been advised to reach out to CBK’s Financial Markets Department, its branches across major towns including Mombasa, Kisumu, Eldoret, Nyeri, Meru, Kisii, and Nakuru, or through licensed banks, investment firms, and stockbrokers.