By Magdalene Wanja - Reporter
Kenya, 25 April 2026 - The Central Bank of Kenya has announced a fresh bond auction, seeking to raise KSh 80 billion through three reopened treasury bonds.
With just KSh 50,000, ordinary Kenyans can invest in government bonds and earn steadily. An investor has to understand if it is investment that drags them into interest earning or not. They can make rational choices.
Treasury bonds are long-term debt instruments issued by the government. They serve a dual purpose: financing national priorities while offering investors predictable annual returns.
Considered among the safest investments, they provide stability in uncertain times and have become a cornerstone for both institutional and retail portfolios.
The reopened papers carry strong coupons: 12.0 percent for the 6.6-year bond, 12.873% for the 13-year bond, and 13.924% for the 20.1-year bond. Settlement is scheduled for 11 May 2026, with secondary trading opening the same day in multiples of KSh 50,000.
CBK Governor Kamau Thugge emphasised the broader purpose of the auction: “This bond issue is designed to strengthen budgetary support while giving Kenyans a reliable avenue to invest. It is about deepening financial inclusion and ensuring that citizens at every level can participate in the country’s growth story.”
April’s auction already revealed strong appetite, with CBK accepting Sh50.19 billion against a Sh40 billion target and rejecting excess bids worth Sh24.7 billion. That oversubscription underscored the trust investors place in government-backed securities.
For Kenyans weighing their options, the May auction is more than a fiscal exercise. It is an invitation to anchor savings and to earn predictable income. The government conducts such bond auctions regularly throughout the year as part of its financing strategy.
Bond Basics - How to Invest Step by Step
1. Open a CSD Account
Register with the Central Bank of Kenya’s Central Securities Depository (CSD) through your bank or directly via the CBK Investor Portal.
2. Choose Your Bid Type
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- Non‑competitive bid: Minimum KSh 50,000, no need to quote a yield. Ideal for retail investors.
- Competitive bid: Minimum KSh 2 million, where you set your own yield. Suited for institutions and high-net-worth individuals.
3. Submit Your Application
Fill in the bid form via your bank or the CBK DhowCSD portal before the deadline (6 May 2026 at 10:00 am).
4. Wait for Allocation
Successful bidders are notified, and payment details are provided via the CBK portal.
5. Settlement and Trading
Settlement occurs on 11 May 2026. Secondary trading begins the same day in multiples of KSh 50,000, allowing you to sell or buy bonds in the market.
6. Earn Interest
Coupon payments are made semi-annually, providing steady income until maturity.