The Central Bank of Kenya (CBK) is seeking to raise KSh50 billion through the sale of government Treasury bonds to support the national budget.
According to the prospectus details provided, the offer runs from October 23 to November 4, 2026, with bids due by 10am on November 4. The auction is scheduled for the same day, while settlement is set for November 9.
The offer involves the reopening of two fixed-coupon Treasury bonds, with stated annual coupon rates of 12.34 per cent and 12.5 per cent.
The 15-year bond, issue number FXD3/2019/015, has a maturity date of July 10, 2034, while the 30-year bond, FXD1/2026/030, matures on March 13, 2056.
Investors must have active DhowCSD accounts to participate in the auction.
The minimum investment for non-competitive bids is KSh50,000, with a maximum of KSh50 million. Competitive bids require a minimum of KSh2 million per Central Securities Depository account for each bond tenor.
The auction will use a multi-price bidding system, under which successful bidders may pay different prices depending on their accepted bids.
Successful investors are expected to obtain their payment details through the CBK DhowCSD investor portal or application. The bonds are also expected to be listed on the Nairobi Securities Exchange, where secondary trading is scheduled to begin on November 9.
Government securities may also be pledged as collateral to obtain loans from regulated financial institutions, subject to the applicable requirements.
The reopening allows the government to raise additional funds through existing securities rather than issuing entirely new bonds.
Investors should note that the coupon rate is not necessarily the same as the effective yield, which depends on the price paid for the bond and other applicable factors.
