The Central Bank of Kenya (CBK) has opened bidding for two reopened fixed-coupon Treasury bonds with a combined value of Ksh60 billion, offering Kenyans, including Sacco members and individual investors, an opportunity to earn stable long-term returns with a minimum investment of Ksh 50,000.
The bonds, issued under prospectus numbers FXD1/2018/020 and FXD1/2021/025, carry coupon rates of 13.20% and 13.92%, respectively, with a withholding tax of 10% applied on interest earnings. Both bonds are subject to the same auction and settlement timelines.
The sale period runs from June 9, 2026, to June 17, 2026, with the auction date set for June 17, 2026, and settlement scheduled for June 22, 2026. Successful bidders are required to obtain their payment key and amount payable through the CBK DhowCSD Investor Portal or app by June 19, 2026.
The first bond, FXD1/2018/020, has a 20-year tenor, with 11.8 years remaining to maturity, and matures on January 3, 2038. The second bond, FXD1/2021/025, has a 25-year tenor, with 20 years remaining to maturity, and matures on April 9, 2046.
The proceeds from both bonds will be used for budgetary support, financing government expenditure without resorting to more expensive external borrowing.
Non-competitive bids, which are open to retail and institutional investors, including Saccos and cooperative societies, are accepted at a minimum of Ksh 50,000 and a maximum of Ksh 50,000,000. Competitive bids, typically placed by commercial banks, investment banks and stockbrokers, carry a minimum threshold of Ksh2 million per Central Securities Depository (CSD) account per tenor.
Secondary trading in multiples of Ksh 50,000 will commence on June 22, 2026, for both bonds on the Nairobi Securities Exchange (NSE), where the bonds will be listed.
ALSO READ:
Kenya overtakes Egypt as Africa’s top milk producer, says PS Mueke
The CBK noted that defaulters risk suspension from subsequent investment in government securities, adding that it reserves the right to accept or reject applications in full or in part without providing reasons.
Investors can also pledge the bonds as collateral to access loans from regulated financial institutions, though any pledge not cancelled at least five days before maturity will result in the securities automatically settling to the lender’s account.
For rediscounting, the CBK will buy back the bonds as a last resort at 3% above the prevailing market yield or coupon rate, whichever is higher. Investors can initiate rediscounting through the CBK DhowCSD portal under the Instructions tab by selecting “Create new” and then the “Rediscount” option.
The CBK added that the bonds may be reopened at a future date and qualify as statutory liquidity ratio assets for both commercial banks and non-bank financial institutions under the Banking Act, Cap 488 of the laws of Kenya.
By Benedict Aoya
Get more stories from our website: Sacco Review.
For comments and clarifications, write to: Saccoreview@
Kindly follow us via our social media pages on Facebook: Sacco Review Newspaper for timely updates
Stay ahead of the pack! Grab the latest Sacco Review newspaper!
