The Central Bank of Kenya (CBK) has reopened the 25-year and 30-year fixed-coupon treasury bonds, seeking to raise KES 40 billion for budgetary support.
The coupons for both bonds are scheduled for payment on various dates extending until maturity. For the 30-year bond (SDB1/2011/030), coupon payments will begin on 09/02/2026 and will continue semi-annually until the final maturity date on 21/01/2041. For the 25-year bond (FXD1/2021/025), coupon payments will start on 04/05/2026, also paid semi-annually, until the bond matures on 09/04/2046.
CBK Accrued Interest Calculation
Both bonds will attract accrued interest (AI), which is added to the clean price to determine the dirty price. Withholding tax, however, will be calculated only on the clean price.
SDB1/2011/030, accrued interest is KES 3.9231 per KES 100.
Example: A quoted yield of 12.0000% gives a clean price of KES 99.9603, resulting in a dirty price of KES 103.8834 (KES 99.9603 + KES 3.9231).
FXD1/2021/025, accrued interest is KES 1.3388 per KES 100.
The prospectus provides detailed pricing tables showing corresponding clean prices across a range of Yields to Maturity (YTM) for both bonds. These reopenings qualify for a statutory liquidity ratio instrument for commercial banks and non-bank financial institutions under the Banking Act CAP 488 and both bonds will be listed on the Nairobi Securities Exchange (NSE).
CBK stated in the prospectus that it may rediscount the bonds as a last resort, and only upon written investor instruction. Rediscounting will be done at 3% above the prevailing market yield or the coupon rate, whichever is higher. The Central Bank also reserves the right to reopen these bonds again in the future and may accept bids in full, in part, or reject them entirely without providing a reason.
Successful bidders will be required to retrieve their payment key and payable amount from the CBK DhowCSD Investor Portal/App on Friday, December 5, 2025, for both SDB1/2011/030 and FXD1/2021/025 bonds.
Also read: CBK Reopens 2 Fixed Coupon Treasury Bonds Targeting KES 40B for Budgetary Support
