The Central Bank of Kenya on Friday invited bids for reopened 15 and 25-year Treasury bonds aimed at raising Sh50 billion.
The bonds qualify for statutory liquidity ratio requirements and will be listed on the Nairobi Securities Exchange, with bids closing on February 11, 2026.
The 15-year bond (Issue Number FXD3/2019/015) currently has 8.4 years to maturity, with a coupon rate of 12.34 percent and a maturity date set for 10 July 2034.
The 25-year bond (Issue Number FXD1/2018/025) has 17.3 years remaining until maturity, offering a 13.4 percent coupon rate and maturing on May 25, 2043. Both bonds carry a withholding tax rate of 10 percent.
The period for sale opened on January 22, 2026, and will close on February 11, 2026, at 10:00 am, with the auction scheduled for February 16, 2026.
Interested investors can submit competitive bids with a minimum amount of Sh2 million per Central Securities Depository (CSD) account per tenor, while non-competitive bids range from Sh50,000 to Sh50 million.
“The Central Bank reserves the right to accept applications in full or part thereof or reject them in total without giving any reason,” CBK said in the official prospectus.
Payments for successful bidders are to be made after obtaining a payment key and amount payable through the CBK DhowCSD Investor Portal or app on February 13, 2026.
Secondary trading in multiples of Sh50,000 will commence on February 16, 2026, for both bond issues, enhancing liquidity for investors.
In addition, the bonds qualify for statutory liquidity ratio requirements for commercial banks and non-bank financial institutions as stipulated in the Banking Act CAP 488.
Investors will also benefit from the ability to pledge these government securities as collateral to access loans from regulated financial institutions.
However, pledges not canceled at least five days before maturity will result in automatic settlement to the lender’s account.
CBK highlighted that the bonds will be listed on the Nairobi Securities Exchange, providing a regulated platform for trading.
“The bonds may be reopened at a future date,” the statement added, offering flexibility for future government borrowing needs.
As a last resort, the Central Bank will rediscount bonds at a rate 3 percent above the prevailing market yield or coupon rate, whichever is higher, ensuring liquidity support for investors. Instructions for rediscounting should be sent through the CBK DhowCSD Investor Portal.
Regarding pricing, the prospectus provided a detailed yield and clean price table for both bonds.
For example, the 15-year bond’s yield to maturity (YTM) ranges from 10.00 percent to 15.00 percent, with clean prices between 113.0943 and 90.1489 Kenyan shillings per 100 shillings face value.
The 25-year bond’s YTM spans 11.00 percent to 15.00 percent, with corresponding clean prices from 118.3656 down to 90.1489.
Accrued interest applies to both bonds, with the 15-year bond accruing Sh0.9492 per Sh100 and the 25-year bond accruing Sh2.3192 per Sh100, with withholding tax computed on clean prices.
Coupon payment dates for the 15-year bond start on July 20, 2026, and continue semi-annually until maturity in July 2034.
The 25-year bond pays coupons semi-annually as well, beginning June 15, 202,6 and continuing until maturity in May 2043.
For enquiries, the Central Bank directs investors to contact its Financial Markets Department or visit its branches in major towns, including Mombasa, Kisumu, Eldoret, Nyeri, Meru, Kisii, and Nakuru.
Investors can also reach out via email at [email protected] or visit the CBK website.
This reopening of long-term Treasury bonds reaffirms the government’s ongoing efforts to manage budgetary support through capital markets while offering investors competitive returns in a regulated and liquid environment.
