Deadline Nears: Investors Have Less Than A Week Left to Bid on Kenya’s 20- and 25-Year Treasury Bonds
NAIROBI— The Central Bank of Kenya (CBK) has reminded investors that the window to submit bids for the reopened 20- and 25-year fixed coupon Treasury bonds will close at 10:00 a.m. on Wednesday, July 9, 2025.
The bonds, listed under FXD1/2018/020 and FXD1/2018/025, were reopened for sale on June 24. The CBK is offering up to KES 50 billion in total to raise funds for budgetary support, with final settlement for successful bids set for July 14, 2025.
Bond Terms
- FXD1/2018/020 has 12.8 years remaining to maturity and a 13.2000% annual interest rate.
- FXD1/2018/025 carries an 18-year maturity with a 13.4000% annual interest rate.
- Both bonds are taxed at a 10% withholding rate on the clean price.
Bids can only be placed through the CBK DhowCSD platform, either via the web portal or mobile app. Investors must meet the minimum bid amounts: KES 50,000 for non-competitive bids and KES 2 million for competitive bids per tenor.
The CBK has stated that successful applicants will be able to retrieve payment details from the DhowCSD platform’s transactions tab starting Friday, July 11, 2025. Failure to complete payment may lead to suspension from future government securities participation.
Pricing and Yield
Current pricing tables released by CBK show that clean prices for FXD1/2018/020 range from KES 107.6729 at a 12.0000% yield to KES 89.8649 at a 15.0000% yield. For FXD1/2018/025, clean prices range from KES 118.5938 at an 11.0000% yield to KES 94.5113 at a 14.2500% yield.
The accrued interest for FXD1/2018/020 is KES 4.3154 per KES 100, and KES 1.0308 per KES 100 for FXD1/2018/025. Investors must include this in their final payment total, as the quoted yield is used to calculate a dirty price (clean price plus accrued interest).
Example:
- At 13.0000% yield, FXD1/2018/020’s clean price is KES 101.1795.
Adding accrued interest: KES 105.4949 total. - At 13.5000% yield, FXD1/2018/025’s clean price is KES 99.3022.
Adding accrued interest: KES 101.3330 total.
Trading and Rediscounting
Secondary trading for both bonds begins Monday, July 14, 2025, in KES 50,000 multiples.
Rediscounting is available only as a last resort and will be priced at 3% above the higher of the market yield or the coupon rate. Investors must submit written instructions through the official CBK rediscount email.
CBK Statement
In its public notice, CBK affirmed its right to accept or reject bids in part or full without explanation. This provision allows flexibility in managing market dynamics and maintaining fiscal discipline.
For inquiries, the CBK has directed investors to reach out through its main office lines, regional branches, currency centers, or the dedicated email [email protected].
Background
Kenya’s government continues to rely on domestic borrowing to manage public debt and fund operations amid revenue shortfalls and delayed external disbursements. These reopened bonds are part of a broader effort to balance the budget while offering long-term, fixed-income investment options to the public.
