The Central Bank of Kenya (CBK) has invited bids for the re-opening of two benchmark fixed coupon Treasury Bonds: a 15-year bond (FXD3/2019/015) and a 20-year bond (FXD1/2021/020). This move aims to raise KES 50 billion to be directed toward budgetary support for the government.
CBK Bond Specifications and Returns
Both instruments offer fixed coupon rates, the 15-year bond, which now has 8.3 years remaining to maturity, carries a coupon rate of 12.3400%. The 20-year bond, with 15.3 years remaining to maturity, offers a higher coupon rate of 13.4440%.
Investors should note that interest payments from these bonds are subject to a withholding tax of 10%. The maturity dates are set for July 10, 2034, for the 15-year issue and July 22, 2041, for the 20-year issue.
The sale period for the 15-year bond begins on May 13, 2026, while the 20-year bond sale opens on May 18, 2026. Both sale periods conclude on May 20, 2026, with a bid submission deadline of 10:00 am on that day. The auction will also take place on May 20, followed by a settlement date of May 25, 2026.
The bonds will be listed on the Nairobi Securities Exchange (NSE). Secondary trading is scheduled to commence on Monday, May 25, 2026, in multiples of KES 50,000.00. Furthermore, these bonds qualify for statutory liquidity ratio requirements for commercial banks and non-bank financial institutions. Investors also have the option to pledge these securities as collateral to access loans from regulated financial institutions.
The CBK has provided detailed pricing tables indicating clean prices for various yields to maturity (YTM). For example, at a YTM of 12.3400%, the 15-year bond has a clean price of KES 99.9605, while the 20-year bond at a YTM of 13.4440% has a clean price of KES 99.9465.
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