The Central Bank of Kenya (CBK) has issued a prospectus for the re-opening of two long-term fixed-coupon Treasury bonds: 15-year and a 25-year papers with 8.4 years and 17.3 years to maturity, respectively. With this issuance, the government is seeking to raise a total of KES 50 billion to be used for budgetary support. Both bonds will qualify for statutory liquidity ratio requirements for Commercial Banks and Non-Bank financial institutions with listing at the Nairobi Securities Exchange (NSE) for secondary trading.
The period of sale for these instruments will run from January 22, 2026, to February 11, 2026. The bid submission deadline and auction will take place on Wednesday, February 11, 2026, by 10:00 am. Successful bidders are expected to settle their payments by February 16, 2026.
Pricing and Accrued Interest (AI) of the Bonds
Investors should be aware that because these are re-opened bonds, they attract Accrued Interest (AI), which is added to the clean price to determine the final dirty price.
FXD3/2019/015: This bond attracts an AI of KES 0.9492 per KES 100. For instance, at a quoted yield of 12.3400%, the clean price is KES 99.9762, resulting in a dirty price of KES 100.9254.
FXD1/2018/025: This bond attracts an AI of KES 2.3192 per KES 100. At a quoted yield of 13.4000%, the clean price of KES 99.9510 brings the dirty price to KES 102.2702.
Secondary trading for both instruments will start on Monday, February 16, 2026, in multiples of KES 50,000.00. Investors may also use these government securities as collateral to access loans from regulated financial institutions through the pledging system. The semi-annual coupon payments for the 15-year bond will begin on July 20, 2026, while the 25-year bond’s first payment of this cycle is scheduled for June 15, 2026.
Also read: CBK Treasury Bills Maintain Strong Momentum in First 2026 Auction
