The Central Bank of Kenya (CBK) has invited bids for the re-opening of two long-term fixed-coupon Treasury bonds for the month of March 2026. The government is seeking to raise a total of KES 60 billion from this issuance to be utilized for budgetary support.
Bond Specifications and Tenors
The March offering features securities with significant remaining tenors, targeting investors with a preference for long-dated government paper. The two papers on offer are the FXD1/2019/020, which has 13.1 years to maturity, and the FXD1/2021/025, which has 20.1 years remaining. These bonds carry coupon rates of 12.8730% and 13.9240%, respectively.
The subscription period for the bonds opened on February 26, 2026, and will run until Wednesday, March 11, 2026. All bids must be submitted by 10:00 am on the closing date, which also serves as the auction date. Successful bidders will be required to settle their payments by March 16, 2026.
CBK bond Pricing and Accrued Interest (AI)
Because these are re-opened bonds, they attract Accrued Interest (AI), which is added to the clean price to determine the total “dirty” price payable by the investor. The FXD1/2019/020 bond attracts an AI of KES 5.6938 per KES 100. For example, if the quoted yield is 12.8730%, the dirty price would be the clean price of KES 99.9794 plus the AI, totaling KES 105.6732.
The FXD1/2021/025 bond attracts an AI of KES 5.0876 per KES 100. At a quoted yield of 13.9240%, the clean price of KES 99.9537 brings the dirty price to KES 105.0413. Withholding tax will be computed based on the clean prices.
Secondary trading for both bonds will commence on Monday, March 16, 2026, in multiples of KES 50,000.00. The securities will be listed on the Nairobi Securities Exchange (NSE) and qualify for statutory liquidity ratio requirements for Commercial Banks and Non-Bank financial institutions as stipulated in the Banking Act. Furthermore, these bonds offer flexibility for investors, so, they can be pledged as collateral to access loans from regulated financial institutions.
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