The Central Bank of Kenya (CBK) has invited investors to participate in the reopening of two long-term Treasury bonds as it seeks to raise Ksh 50 billion for budgetary support.

The move targets both institutional and retail investors, offering fixed-income options amid rising interest rates and ongoing fiscal management pressures.

In a post on X dated January 22, 2026, the CBK shared details of the bonds, stating, “Central Bank of Kenya, acting in its capacity as fiscal agent for the Republic of Kenya, invites bids for the above bonds whose terms and conditions are as follows.”

The two bonds in question are FXD3/2019/015, with a 15-year tenor and 8.4 years remaining to maturity, and FXD1/2018/025, with a 25-year tenor and 17.3 years remaining. They carry fixed coupon rates of 12.3400% and 13.4000%, respectively, with withholding tax at 10% for both.

Pricing tables in the prospectus guide bidders on clean prices at various yields to maturity. Accrued interest for the 15-year bond is Ksh 0.9492 per Ksh 100, and Ksh 2.3192 for the 25-year bond.

Sale period and participation rules

The sale period runs from January 22 to February 11, 2026, with bids due by 10:00 a.m. on the final day. The auction is scheduled for February 11, followed by settlement on February 16.

Non-competitive bids are capped between Ksh 50,000 and Ksh 50 million per account, while competitive bids start at Ksh 2 million per Central Securities Depository (CSD) account per tenor.

Successful bidders are required to obtain payment details through the CBK DhowCSD Investor Portal or App on February 13. The CBK reserves the right to accept or reject bids partially or fully without explanation.

Secondary trading will begin on February 16 in multiples of Ksh 50,000, while rediscounting is available as a last resort at 3% above the prevailing market yield or coupon rate, whichever is higher.

The bonds qualify for statutory liquidity ratios under the Banking Act, CAP 488 and will be listed on the Nairobi Securities Exchange. Investors may also pledge the securities as collateral for loans, with automatic settlement to lenders if not cancelled five days before maturity.

Pricing and strategic importance

Coupon payments are semi-annual, with scheduled dates running to 2034 and 2043. Analysts say reopening existing bonds allows the government to extend debt maturities, attract long-term investors, and potentially lower borrowing costs compared to new issues. Retail participation through the DhowCSD app is encouraged, expanding access to government securities.

For inquiries, investors can contact CBK’s Financial Markets Department at 2866000 or email [email protected].