The Central Bank of Kenya has reopened two fixed-coupon Treasury bonds for domestic investors. The sale runs from 24 September to 30 September 2026, with bids due by 10:00 am on 30 September 2026.
According to the CBK prospectus, the Bank is offering KSh 50 billion through the two reopened issues for budgetary support. Coupons are 12.34% and 12.873%. Interest is subject to 10% withholding tax.
Both bonds were first issued in 2019. Investors buy the remaining life to maturity, not a brand-new 15- or 20-year term from today.
Bonds at a Glance
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| Issue code | Original tenor | Remaining (approx.) | Coupon | Maturity |
|---|---|---|---|---|
| FXD3/2019/015 | 15 years | About 7.8 years | 12.34% | 10 July 2034 |
| FXD1/2019/020 | 20 years | About 12.5 years | 12.873% | 21 March 2039 |
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The coupon is the fixed annual interest rate on face value. The yield you actually earn depends on the price at which your bid is accepted. On a multi-price auction, accepted yields can differ among successful competitive bidders.
Key Dates and Terms
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| Item | Detail |
|---|---|
| Offer size | KSh 50 billion across the two reopened bonds |
| Purpose | Budgetary support |
| Sale period | 24 September 2026 to 30 September 2026 |
| Bid deadline | 30 September 2026 by 10:00 am |
| Auction date | 30 September 2026 |
| Settlement | 5 October 2026 |
| Withholding tax | 10% on interest |
| Auction method | Multi-price (as reported for this offer) |
| Secondary trading | From settlement, typically in multiples of KSh 50,000 |
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CBK acts as fiscal agent for the Republic of Kenya. It may accept bids in full or in part, or reject them, under standard prospectus terms.
Who Can Bid and How Much
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| Bid type | Amount | How it works |
|---|---|---|
| Non-competitive | Min KSh 50,000 · max KSh 50 million per CSD account rules | You do not set a yield. Suited to most retail investors |
| Competitive | Min KSh 2 million per CSD account per tenor | You bid a yield. CBK may accept fully, partly or not at all |
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You need an active DhowCSD account. You can also bid through a licensed commercial bank or investment firm that handles government securities.
How to Bid on DhowCSD
DhowCSD is CBK’s platform for holding and buying Treasury bills and bonds. Use the web portal or the official app.
Portal: https://dhowcsd.centralbank.go.ke/
Bonds information: https://www.centralbank.go.ke/securities/treasury-bonds/
Open an account (if you do not have one)
- Open the portal or install the DhowCSD app (Google Play or App Store).
- Create an account with email and a Kenyan mobile number.
- Complete KYC (ID, KRA PIN and other details as required).
- Finish registration within the time CBK allows. Incomplete profiles can be deleted.
- Wait for approval, then log in.
Place a bid for this auction
- Log in to DhowCSD.
- Open Auctions (or Buy/Sell → Securities on some app layouts).
- Select FXD3/2019/015 or FXD1/2019/020.
- Click Create bid.
- Choose non-competitive or competitive.
- Enter face value in the Amount field. For competitive bids, enter your yield.
- Optionally select a bid broker (bonds only; default may be None).
- Select source of funds (Local or Offshore) and the specific source (for example salary, maturing T-bill or T-bond, or others with a short note).
- Accept the Legal and Fund terms.
- Click Place Bid, review, and confirm. You should see a success message and get an email.
Submit by 10:00 am on 30 September 2026. Late bids are not processed.
After the auction
- Check auction results on DhowCSD or CBK announcements.
- If successful, open the Transactions tab and obtain the payment key and amount payable (on the date given in the prospectus).
- Pay by settlement day, 5 October 2026.
- Securities are credited to your CSD account. Secondary trading typically starts from settlement in multiples of KSh 50,000.
Failure to pay after a successful bid can lead to suspension from later government securities auctions. CBK may accept applications in full or in part, or reject them, without giving reasons.
Use only official DhowCSD channels or licensed banks and brokers. Do not send money to unofficial “agents” on social media.
Tax
Interest on these fixed-coupon Treasury bonds attracts 10% withholding tax under the terms reported for this offer. Tax treatment can depend on your status. This is not tax advice. Confirm with a tax professional if you need personal guidance.
What Investors Should Weigh
- Coupon versus yield: 12.34% and 12.873% are coupons on face value. Your effective return also depends on the accepted price or yield.
- Interest-rate risk: If market yields rise, bond prices can fall. Selling before maturity may produce a gain or a loss.
- Liquidity: Bonds can trade after settlement, but secondary market depth varies.
- Government securities risk: These are sovereign domestic bonds. They are not bank deposits and are not money market fund units.
- Allocation risk: You may receive a partial allocation or none.
Past coupon levels on older issues do not guarantee the yield you receive at this auction.
Read also:CBK Infrastructure Bond Oversubscribed by Sh310bn as Bids Hit Sh460bn
Frequently Asked Questions
What is the offer size?
The CBK prospectus provides for KSh 50 billion across the two reopened bonds for budgetary support.
What are the bond codes?
FXD3/2019/015 (matures 10 July 2034, coupon 12.34%) and FXD1/2019/020 (matures 21 March 2039, coupon 12.873%).
When do bids close?
30 September 2026 by 10:00 am. Auction is the same day. Settlement is 5 October 2026.
What is the minimum for retail investors?
Non-competitive bids typically start at KSh 50,000, subject to the prospectus maximum (often up to KSh 50 million per CSD account rules).
How do I bid?
Through DhowCSD or a licensed bank or investment firm.
Is interest taxed?
Yes. These bonds are reported with 10% withholding tax on interest.
Can I sell before maturity?
Yes, on the secondary market after settlement, subject to market conditions and trading rules (often in KSh 50,000 multiples).
Bottom Line
CBK has reopened FXD3/2019/015 and FXD1/2019/020, with bids due by 10:00 am on 30 September 2026 and settlement on 5 October 2026. The CBK prospectus provides for KSh 50 billion across the two reopened bonds for budgetary support, with coupons of 12.34% and 12.873% and 10% withholding tax on interest. Retail investors can use non-competitive bids via DhowCSD from KSh 50,000. Confirm every figure on the live prospectus before you apply.
Sources:
Central Bank of Kenya;
CBK – Treasury Bonds (DhowCSD account and bid guidance);
CBK DhowCSD portal;
CBK prospectus terms as reported for the 24–30 September 2026 reopening of FXD3/2019/015 and FXD1/2019/020.
This article is for information only and is not investment, tax or legal advice. Government securities carry risks, including interest-rate and reinvestment risk. Confirm amounts, dates and terms on the official CBK prospectus and DhowCSD before bidding.