The Central Bank of Kenya (CBK) has invited investors to bid for Sh50 billion in reopened 15-year and 30-year Treasury bonds, with the sale opening today, Friday, October 23, 2026, and closing on Wednesday, November 4, to raise money for budgetary support.
Acting as fiscal agent for the government, the CBK is offering two bonds. The 15-year bond, FXD3/2019/015, has about 7.8 years left to maturity, carries a 12.34 percent coupon and matures on July 10, 2034. The 30-year bond, FXD1/2026/030, has 29.5 years remaining, pays 12.5 percent and matures on March 13, 2056. Both attract a 10 percent withholding tax. The prospectus gives a combined target of Sh50 billion and does not say how much is meant to come from each bond.
Bids must be submitted by 10am on November 4, the same day as the auction, using a multi-price method, which means successful bidders pay according to the yields they bid rather than a single uniform rate. Only investors with active DhowCSD accounts can take part.
Non-competitive bids start at Sh50,000 and are capped at Sh50 million, while competitive bids start at Sh2 million per account for each bond. The CBK reserves the right to accept bids in full, allocate them pro rata, or reject them without giving a reason.
Successful bidders will get their payment key and the amount payable on the DhowCSD investor portal or app on Friday, November 6. Settlement is on Monday, November 9, when secondary trading in multiples of Sh50,000 also begins on the Nairobi Securities Exchange, where the bonds will be listed.
The prospectus includes pricing tables to help bidders. At a yield of 12.34 percent, the 15-year bond has a clean price of Sh99.9562 per Sh100. It carries accrued interest of Sh3.7969, which brings the price payable to Sh103.7531.
At a yield of 12.5 percent, the 30-year bond has a clean price of Sh99.9808 and accrued interest of Sh0.7212, for a total of Sh100.7020. Coupons on the 15-year bond are paid in January and July, starting on January 18, 2027, while the 30-year bond pays in April and October, starting on April 19, 2027.
The bonds qualify for the statutory liquidity ratio requirements of banks and non-bank financial institutions. Investors can also pledge them as collateral for loans, and the CBK will rediscount them as a last resort at 3 percent above the prevailing market yield or coupon rate, whichever is higher.
