New Opportunity for Investors as CBK Reopens High-Yield Treasury Bonds

The Central Bank of Kenya (CBK) has stated that it will be reopening three coupon Treasury bonds in order to invite investment from investors who would invest in the Ksh 80 billion worth of government bonds.

The offer includes two 20-year bonds and one 25-year bond, with varying coupon rates and maturity periods extending up to 2046.

According to the prospectus, the bonds: FXD1/2012/020, FXD1/2019/020, and FXD1/2021/025, carry coupon rates of 12.0000 percent, 12.8730 percent, and 13.9240 percent, respectively.

The CBK stated that it is acting in its capacity as fiscal agent for the Republic of Kenya and outlined that the funds raised will go toward budgetary support.

The sale period runs from April 23, 2026, to May 6, 2026, with the auction scheduled for the same day. Settlement is set for May 11, 2026.

Investors can submit bids under both competitive and non-competitive categories, with minimum investments starting at Ksh 50,000 for non-competitive bids and Ksh 2 million for competitive bids per Central Securities Depository account.

Bond Structure and Investor Terms

The CBK detailed that the 20-year bonds have remaining tenors of 6.6 and 13 years, respectively, while the 25-year bond has 20.1 years to maturity, reflecting their re-opened status rather than new issuances.

“All successful bidders should obtain the payment key and amount payable from the CBK DhowCSD Investor Portal/App,” the prospectus states, emphasizing the digitized transaction process.

Investors are subject to a 10 percent withholding tax on coupon earnings, in line with Kenyan tax regulations.

Maturity dates are shown as November 1, 2032, March 21, 2039, and April 9, 2046, in their corresponding bonds.

As an additional warning to potential defaulters, the CBK warned that defaulters may “be suspended from subsequent investment in Government Securities.”

Also Read: Surge in Digital Loans as CBK Approves 32 More Lenders

Secondary Market and Liquidity Provisions

The bonds will be listed on the Nairobi Securities Exchange, enhancing their tradability and liquidity in the secondary market.

Trading is expected to begin on May 11, 2026, in multiples of Ksh 50,000.

“Secondary trading in multiples of Ksh 50,000.00 commences on Monday,” the CBK confirmed.

Additionally, the bonds qualify for statutory liquidity ratio requirements for banks and non-bank financial institutions under Kenyan law.

This feature is likely to attract institutional investors seeking compliant liquid assets.

CBK further mentioned the provision regarding discounting, saying, “CBK will rediscount bonds as a last resort, at 3% above the current market yield or coupon rate, whichever is greater.”

This acts as a backup source of liquidity for the holders of these securities.

Also Read:Zenith Bank Secures Full Acquisition of Paramount Bank After CBK Approval

Collateral Use and Future Re-openings

Investors will also be able to use the bonds as collateral to access credit from regulated financial institutions.

“Investors can pledge Government Securities as collateral to access loans,” the document states, highlighting the dual utility of the instruments beyond income generation.

The CBK added that the bonds “may be re-opened at a future date,” signaling potential additional opportunities for investors depending on government financing needs.

For inquiries, the CBK has directed investors to its Financial Markets Department and regional branches.

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