The Government of Kenya, through the Central Bank of Kenya (CBK), has announced the re-opening of two long-term treasury bonds to raise Sh40 billion in budgetary support.
The reopened instruments include the 30-year SDB1/2011/030 bond with a 12 percent coupon, maturing on January 21, 2041, and the 25-year FXD1/2021/025 bond with a 13.924 percent coupon, maturing on April 9, 2046.
The announcement on Thursday says the offer period runs from Wednesday, November 27, 2025, to Wednesday, December 3, 2025, with the auction scheduled for December 3 and settlement on December 8.
The Central Bank emphasized that “all successful bidders should obtain the payment key and amount payable from the CBK DhowCSD Investor Portal App under the transactions tab on Friday, December 5, 2025, for SDB1/2011/030 and FXD1/2021/025.”
This reopening follows the previous SDB1/2011/030 auctions, which demonstrated mixed performance.
The last reopening on 8 September 2025 mobilized only Sh8.07 billion out of Sh20 billion on offer, achieving a 40.35 percent performance with a weighted average rate of 13.96 percent.
This followed a June 2025 reopening that attracted Sh101.36 billion in bids against Sh50 billion offered, of which Sh71.64 billion was accepted.
The CBK outlined the key terms for both bonds, highlighting their significance for investors.
The SDB1/2011/030 has 15.2 years to maturity while the FXD1/2021/025 carries 20.4 years to maturity. Both bonds are subject to a 10% withholding tax, and investors may participate through non-competitive or competitive bids.
Non-competitive bids range from Sh50,000 to Sh50 million, while competitive bids have a minimum of Sh2 million per CSD account per tenor.
“The Central Bank reserves the right to accept applications in full or part thereof or reject them in total without giving any reason,” CBK noted, emphasizing the standard discretion exercised in government securities auctions.
Secondary trading in multiples of Sh50,000 will commence on Monday, December 8, 2025, immediately following settlement.
The bonds also qualify for statutory liquidity ratio requirements for commercial banks and non-bank financial institutions under the Banking Act CAP 488.
Additionally, they will be listed on the Nairobi Securities Exchange, providing a platform for investors to trade these long-term instruments.
For investors requiring liquidity, the CBK stated that it will rediscount bonds as a last resort, at 3 percent above the prevailing market yield or coupon rate whichever is higher, upon receiving written instructions from investors via the email rediscounts/centralbank.go.ke.”
The CBK emphasized that the bonds may be reopened at a future date to accommodate additional investor interest, highlighting the government’s ongoing efforts to mobilize domestic resources while providing investment opportunities.
The central bank also reminded investors that pledges outstanding five (5) days prior to the maturity date will be automatically closed, ensuring orderly handling of bond obligations.
For enquiries, investors are encouraged to contact the Central Bank of Kenya through its financial market departments in Nairobi, Mombasa, Eldoret, or Nyeri, or via email through the official CBK website.
The bonds represent a strategic effort by the government to secure budgetary support while providing competitive returns to long-term investors.
