The Central Bank of Kenya (CBK) has announced the sale of two re-opened long-term Treasury Bonds worth Ksh40 billion, inviting investors to submit bids between November 27 and December 3, 2025.

Acting as fiscal agent for the National Treasury, the CBK said the issuance aims to support the government’s budgetary requirements.

According to the prospectus, the reopened bonds include the SDB1/2011/030, a 30-year paper now with 15.2 years to maturity, and the FXD1/2021/025, a 25-year bond with 20.4 years to maturity.

The coupon rates are 12% and 13.924% respectively, both attracting a 10% withholding tax on interest.

The CBK noted that the bid submission deadline and auction date will both fall on Wednesday, December 3, 2025, with settlement scheduled for December 8, 2025.

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Bid Terms and Investor Requirements

The Central Bank stated that non-competitive bids will range between KES 50,000 and KES 50 million, while competitive bids start at a minimum of KES 2 million per CSD account per tenor.

The total amount on offer across the two bonds is Sh40 billion.

CBK advised successful bidders to obtain payment keys and payable amounts from the DhowCSD Investor Portal or App on Friday, December 5, 2025.

“Defaulters may be suspended from subsequent investment in Government Securities,” the prospectus warns, stating the need for timely settlement.

The Bank also reiterated its authority to “accept applications in full or part thereof or reject them in total without giving any reason.”

Pricing, Accrued Interest, and Taxation

The CBK published detailed pricing tables showing clean prices across a range of yields.

For the SDB1/2011/030, the bond attracts an accrued interest (AI) of KSh 3.9231 per KSh 100, while the FXD1/2021/025 attracts KSh 1.3388 per KSh 100.

Withholding tax will be computed strictly on clean price values.

The Bank gave an example illustrating that at a quoted yield of 12.0000%, the dirty price for SDB1/2011/030 becomes the clean price KSh 99.9603 plus accrued interest, totalling KSh 103.8834.

A similar computation is provided for FXD1/2021/025 at yield 13.9240%, resulting in a dirty price of KSh 101.3027.

Secondary Market, Rediscounting and Other Conditions

Secondary trading for both bonds will begin on Monday, December 8, 2025, in multiples of KSh 50,000.

The CBK added that rediscounting will be available “as a last resort” at 3% above the prevailing market yield or coupon rate, whichever is higher.

Requests must be submitted in writing via the designated rediscount email.

The bonds will also qualify for statutory liquidity ratio requirements for commercial banks and non-bank financial institutions as outlined in the Banking Act CAP 488, and they will be listed on the Nairobi Securities Exchange (NSE).

The CBK further noted that any pledges outstanding five days before maturity will be automatically closed.

The prospectus also confirms that the bonds may be re-opened again in the future, subject to market conditions.

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Coupon Payment Schedules Released

The CBK included detailed coupon payment schedules for both securities.

For the 30-year SDB1/2011/030, payments will run semi-annually from February 9, 2026, through to the final maturity date on January 21, 2041.

For FXD1/2021/025, coupon payments will similarly be made every six months beginning May 4, 2026, until the bond matures on April 9, 2046.

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CBK Governor Kamau Thugge. PHOTO/Business Daily.