CBK Reopens Sale of 25- and 30-Year Bonds to Boost Budget Funding

The Central Bank of Kenya (CBK) has reopened bids for two long-term Treasury bonds as the government seeks fresh financing for its budget. The offer includes 25-year and 30-year fixed-coupon bonds now available for investors.

In a notice published on Monday,  CBK confirmed the sale period and provided full details of the issuance.

“Prospectus for re-opened 30 and 25-year fixed coupon treasury bonds. Central Bank of Kenya, acting in its capacity as fiscal agent for the Republic of Kenya, invites bids for the above bonds whose terms and conditions are as follows,” the notice read in part.

The 30-year bond, SDB1/2011/030, carries a 12 per cent coupon, while the 25-year bond, FXD1/2021/025, offers a coupon rate of 13.9240 per cent. Both securities will attract a 10 per cent withholding tax.

The 30-year paper will mature on January 21, 2041, and the 25-year bond on April 9, 2046.

CBK has given investors until Wednesday, December 3, at 10:00 am to submit their bids, with the auction scheduled for the same day.

Successful applicants will settle their purchases on December 8, 2025.

“All successful bidders should obtain the payment key and amount payable from the CBK DhowCSD Investor Portal/App under the transactions tab on Friday, December 5, 2025, for SDB1/2011/030 and FXD1/2021/025,” the notice stated.

Non-competitive bids will start at KSh 50,000, while competitive bids must be at least KSh 2 million per CSD account. “Defaulters may be suspended from subsequent investment in Government Securities.”

CBK also stated that it may accept or reject bids without providing reasons.

Secondary trading for both bonds will begin immediately after settlement. “Secondary trading in multiples of 50,000.00 commences on Monday, December 8, 2025, for SDB1/2011/030 and FXD1/2021/025.”

The prospectus also explains pricing and accrued interest for the 30-year bond.

“The bond attracts Accrued Interest (AI) of Ksh 3.9231 per Ksh 100. Example: If quoted yield is 12.0000%, dirty price is the clean price (Ksh 99.9603) plus AI (Ksh 3.9231).” The 25-year bond also carries AI. “The bond attracts Accrued Interest (AI) of Ksh. 1.3388 per Ksh 100… Example: If quoted yield is 13.9240%, dirty price is the clean price (Ksh 99.9639) plus AI (Ksh 1.3388).”

The government is under pressure to fill financing gaps, and the reopened bonds are expected to attract strong interest from banks, pension funds, insurers, and high-net-worth investors seeking long-term returns.