By Benadeta Mwaura - Reporter
Kenya, 14 July 2026 - The Central Bank of Kenya (CBK) has reopened the sale of Treasury bonds worth KSh 40 billion, offering individual investors an opportunity to invest in government securities with a minimum of KSh50,000 as the State steps up domestic borrowing to finance its budget.
The latest bond offer comprises two reopened fixed-coupon Treasury bonds that will be used to provide budgetary support for the government. The first is the FXD1/2019/020 bond, which has 12.8 years remaining to maturity and carries a 12.873% annual coupon rate. It is scheduled to mature on March 21, 2039.
The second is the FXD1/2022/025 bond, which has 21.4 years remaining before maturity and offers investors a 14.188% annual coupon rate. It will mature on September 23, 2047.
According to the CBK prospectus, the bond sale opened on 14 July 2026 and will close on 22 July 2026, with bids required to be submitted by 10:00 a.m. on the closing date. The auction will take place on the same day, while successful investors are expected to settle their purchases on July 27, 2026.
The regulator said the bonds are open to both retail and institutional investors. For individual investors making non-competitive bids, the minimum investment has been set at KSh50,000, while the maximum investment under this category is KSh50 million.
Investors opting for competitive bids, where they specify the yield they are willing to accept, must invest at least KSh2 million per Central Securities Depository (CSD) account for each bond tenor.
Successful bidders will be required to obtain their payment keys and the amount payable through the CBK DhowCSD Investor Portal or mobile application before completing payment.
"All successful bidders should obtain the payment key and amount payable from the CBK DhowCSD Investor Portal/App under the transactions tab on Friday, 24-Jul-2026, for FXD1/2019/020 and FXD1/2022/025," the CBK said in the prospectus.
The bonds will attract a 10% withholding tax on interest earned and will be listed on the Nairobi Securities Exchange (NSE) after issuance, allowing investors to buy and sell them in the secondary market in multiples of KSh50,000.
CBK also noted that the securities qualify for statutory liquidity ratio requirements applicable to commercial banks and non-bank financial institutions. Investors can also use the bonds as collateral when seeking loans from regulated financial institutions, enhancing their attractiveness as long-term investment instruments.
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The central bank warned that investors who fail to honour successful bids risk suspension from future government securities auctions.
"Defaulters may be suspended from subsequent investment in Government Securities," the CBK said.
To participate in the bond auction, investors must first open a DhowCSD account with the Central Bank if they do not already have one. Registration can be completed online using a computer or smartphone, after which investors can submit their bids electronically through the DhowCSD platform before the deadline.
Treasury bonds remain one of Kenya's safest investment options because they are backed by the government. Unlike Treasury bills, which mature in less than one year, Treasury bonds are medium- to long-term investments that pay investors fixed interest every six months until maturity, after which the principal amount is repaid.
The latest bond sale comes as the government continues to rely on domestic borrowing to bridge its financing gap while seeking to broaden participation in the capital markets by encouraging more retail investors to purchase government securities.
The relatively low entry threshold of KSh50,000 is intended to make Treasury bonds accessible to ordinary Kenyans seeking stable returns amid fluctuating financial markets.
CBK Invites Kenyans to Invest in New Treasury Bonds With as Little as KSh 50,000
According to the CBK prospectus, the bond sale opened on 14 July 2026 and will close on 22 July 2026.