The Central Bank of Kenya has reopened two long-term fixed-coupon treasury bonds, giving investors another chance to take part in government borrowing aimed at financing the national budget. The offer covers the 20-year FXD1/2019/020 and the 25-year FXD1/2021/025 bonds, with a combined value of Sh60 billion.
According to a statement released on Friday, the bonds will be settled on March 16, 2026, and will be listed on the Nairobi Securities Exchange for secondary trading.
The 20-year bond carries a coupon rate of 10 percent and will mature on March 21, 2039. The 25-year bond also offers a 10 percent coupon and is set to mature on April 9, 2046. Both instruments attract a withholding tax of 10 percent and qualify for statutory liquidity requirements for commercial banks and non-bank financial institutions under the Banking Act CAP 488.
CBK has outlined the bidding terms for interested investors. Non-competitive bids can be submitted from a minimum of Sh50,000 up to Sh50 million. Competitive bids, on the other hand, require a minimum of Sh2 million per Central Depository and Settlement account for each tenor.
“All successful bidders should obtain the payment key and amount payable from the CHK DhowCSD Investor Portal App under the transactions tab on Friday, 13/03/2026,” the bank stated, adding that defaulters risk suspension from future investments in government securities.
Secondary market trading will begin on March 16, 2026, in multiples of Sh50,000, allowing investors to buy and sell the bonds before maturity and access liquidity when needed.
The regulator further noted that the bonds may be reopened again at a later date. Investors are also allowed to use the securities as collateral when seeking loans from regulated financial institutions. However, failure to cancel a pledged bond at least five days before maturity will lead to automatic settlement to the lender’s account.
CBK said it may rediscount the bonds as a last resort, “at 3% above the prevailing market yield or coupon rate, whichever is higher,” with guidance available through the CBK DhowCSD Investor Portal.
Pricing details show yields of 12.873 percent for the 20-year bond and 13.924 percent for the 25-year bond. Clean prices will vary depending on the bids submitted by investors.
Coupon payments for both bonds will be made twice a year. The first payment for the 20-year bond is scheduled for April 6, 2026, while the 25-year bond will make its first coupon payment on May 4, 2026.
Through the reopening of the two bonds, CBK continues to offer long-term investment options to the market while raising funds to support the country’s budget needs.
