The Central Bank of Kenya (CBK), which serves as a fiscal agent for the government, has reopened two fixed-coupon Treasury Bonds – FXD1/2019/020 and FXD1/2022/025, and this issuance aims to raise a significant KES 60 billion from the market for budgetary support. The reopening of the bonds is alongside a switch bond auction in respect of FXD1/2016/010 to FXD1/2022/015.
Investment Timeline and Requirements as per CBK
The Period of Sale for these bonds began on December 9, 2025, and will run through January 7, 2026. The Auction Date and Bid Submission Deadline are both scheduled for January 7, 2026, by 10:00 am, East African Time (EAT). Successful bidders are expected to settle their payments on January 12, 2026.
These bonds are classified as liquid investments, qualifying for statutory liquidity ratio requirements for Commercial Banks and Non-Bank financial institutions as stipulated in the Banking Act CAP 488 of the laws of Kenya. The bonds will be available for secondary trading at the Nairobi Securities Exchange (NSE) in multiples of KES 50,000 as from January 12, 2026.
The minimum non-competitive bids for investors shall not be lower than KES 50,000.00 but shall not exceed KES 50,000,000.00 and the minimum competitive bids shall not be less than KES 2 million per CSD accounts per tenor.
Switch Auction by the CBK
Simultaneously, the CBK has issued a prospectus for a switch auction of FXD1/2016/01, and investors in FXD1/2016/010 (0.6 years to maturity, 15.0390% coupon) as at January 19, 2026 have been offered to switch part or their entire holding in the bond to FXD1/2022/015 which has a coupon rate of 13.9420% and 11.3 years to maturity. The offer size is KES 20B and period of sale began on December 9, 2025 and will run through January 19, 2026. The bid submission deadline has been slated for January 19, 2026, at 1000H EAT and the auction date is January 19, 2026.
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