The Central Bank of Kenya (CBK) has launched a Ksh20 billion bond offer, giving investors a chance to buy long‑term government securities.

The auction runs from April 7 to April 15, 2026, with bids due by 10 am on April 15, 2026. The results of the tender will be announced the same day, and settlement is set for April 20, 2026.

“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,” CBK stated.

CBK is offering two bonds: a re‑opened 30‑year Savings Development Bond and a new 30‑year Fixed Coupon Treasury Bond. Both are designed to lock in long‑term funding for the government while giving investors predictable coupon payments over decades.

Two bonds on offer

The first bond, SDB1/2011/030, carries a coupon rate of 12 per cent. It has 14.9 years left to maturity and will mature on January 21, 2041. Its International Securities Identification Number (ISIN) is KE2000002135.

The second is the new FXD1/2026/030 bond. It pays a slightly higher coupon of 12.5 per cent, and matures on March 13, 2056, offering a full 30‑year term. Its ISIN is KE8000006760.

Both bonds attract 10 per cent withholding tax on interest payments. The funds raised will go towards budgetary support.

Retail investors can participate by placing non‑competitive bids. The minimum amount for retail investors is Ksh50,000, with a maximum of Ksh50 million. Institutional investors must bid at least Ksh2 million per CSD account for each bond.

Successful bidders will receive their payment key and the exact amount allocated via the CBK DhowCSD Investor Portal or App on April 17, 2026. Investors who fail to make payment risk suspension from future government securities deals.

CBK retains the right to accept bids in full, in part, or reject them entirely without explanation.

Once the bonds settle on April 20, 2026 they will begin trading on the Nairobi Securities Exchange in multiples of Ksh50,000.

Under the Banking Act, commercial banks and non‑bank financial institutions may use the bonds to satisfy liquidity ratio rules. Investors can also pledge the bonds as collateral to secure loans from regulated lenders. If investors do not cancel the pledge at least five days before maturity, the securities automatically transfer to the lender’s account.

Pricing details

The bond prospectus includes pricing tables based on different yield‑to‑maturity levels. For the re‑opened SDB1/2011/030 bond, the clean price at a 12 per cent yield stands at 99.9587. At the coupon rate, the dirty price includes accrued interest of Ksh2.3077 per Ksh100 face value.

For the new FXD1/2026/030, the clean price at a 12.5 per cent yield is exactly 100. Since the bond launches on an interest payment date, accrued interest is zero, and the dirty price equals the clean price.

Withholding tax applies only to the clean price in both cases.

Kenya continues to rely heavily on domestic borrowing to fund its budget. The government faces a large fiscal deficit and must roll over existing debt while financing development spending.

Long‑dated government bonds allow the Treasury to secure funding over many years. For investors, these bonds offer steady coupon payments and a transparent way to invest in government paper.

Yields on similar long‑term Kenyan government bonds have recently hovered around the 12–12.5 per cent range, as market participants balance inflation risks, foreign‑exchange movements, and Kenya’s overall fiscal outlook.

Retail investors who meet the minimum bid requirements can apply directly through the DhowCSD platform. Others may place bids through commercial banks, investment banks or stockbrokers.

With the sale window open for only a few days, interested investors are advised to prepare their bids early and review the pricing tables before submitting offers through the official portal.