CBK Opens Sh100 Billion Treasury Bond Sale for Kenyan Investors

Date:

NAIROBI, Kenya — The Central Bank of Kenya (CBK) has opened a Sh100 billion Treasury bond sale, giving investors an opportunity to buy into two long-term government securities with coupon rates of up to 12.873 per cent.

The offer comprises two reopened fixed-coupon Treasury bonds, with CBK seeking Sh50 billion from each security.

The first bond carries a coupon rate of 12.34 per cent and matures in July 2034, while the second offers a 12.873 per cent coupon and matures in March 2039.

CBK is acting as the fiscal agent for the Government of Kenya, with proceeds from the sale earmarked for budgetary support.

Two Treasury Bonds on Offer

The first security, FXD3/2019/015, has about 7.8 years remaining to maturity and carries a fixed coupon rate of 12.34 per cent.

It will mature on July 10, 2034.

The second security, FXD1/2019/020, has approximately 12.5 years remaining and carries a coupon rate of 12.873 per cent.

It will mature on March 21, 2039.

Both bonds are subject to a 10 per cent withholding tax, with interest payments made according to the schedules contained in the CBK prospectus.

Interest payments for the 2034 bond begin in January 2027, while payments for the 2039 bond begin in April 2027.

September 30 Deadline for Investors

The bond sale opened on September 24, 2026, and will close on September 30.

Investors must submit their bids by 10am on September 30, with the auction also scheduled for the same day.

CBK said successful bids will be settled on October 5, 2026.

The bank will use a multi-price auction, under which successful bidders are allocated securities at their respective accepted bid prices.

Minimum Investment Amounts

Investors participating through non-competitive bids can invest a minimum of Sh50,000, subject to a maximum of Sh50 million.

Competitive bids require a minimum investment of Sh2 million per Central Securities Depository (CSD) account for each bond tenor.

Participation is open to investors with active DhowCSD accounts.

Successful bidders will obtain details of the amount payable and their payment key through the CBK DhowCSD Investor Portal or App.

Bonds Can Be Traded After Settlement

The Treasury bonds will enter the secondary market following settlement on October 5.

Trading will take place in multiples of Sh50,000, allowing investors to buy or sell the securities after issuance rather than holding them until maturity.

CBK has also reserved the right to reopen the bonds at a future date.

Both securities will be listed on the Nairobi Securities Exchange (NSE), providing investors with access to a regulated secondary market.

Treasury Bonds Can Be Used as Collateral

The securities can also be pledged as collateral when investors seek loans from regulated financial institutions.

CBK said the bonds qualify for statutory liquidity ratio requirements for commercial banks and non-bank financial institutions under the Banking Act.

Investors using the securities as collateral must ensure that any pledge is cancelled at least five days before maturity.

If a pledge remains active within that period, the securities will automatically settle into the lender’s account.

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