The move targets both institutional and retail investors and comes at a time when the government is keen to extend debt maturities while managing rising interest costs.
In a notice issued on Thursday, January 22, 2026, the CBK said it was acting in its capacity as fiscal agent for the Republic of Kenya in inviting bids for the two bonds.
In a notice issued on Thursday, January 22, 2026, the CBK said it was acting in its capacity as fiscal agent for the Republic of Kenya in inviting bids for the two bonds.
The reopening involves FXD3/2019/015, a 15-year bond with 8.4 years remaining to maturity, and FXD1/2018/025, a 25-year bond with 17.3 years remaining.
“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,” CBK said in a post on X.
The 15-year bond carries a fixed coupon rate of 12.3400 per cent, while the 25-year bond offers a higher fixed coupon of 13.4000 per cent.
“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,” CBK said in a post on X.
The 15-year bond carries a fixed coupon rate of 12.3400 per cent, while the 25-year bond offers a higher fixed coupon of 13.4000 per cent.
Both instruments are subject to a withholding tax of 10 per cent on interest income, making them attractive options for investors seeking stable long-term returns in a volatile interest rate environment.
According to the CBK, accrued interest on the 15-year bond stands at Ksh0.9492 per Ksh100, while the 25-year bond has accrued interest of Ksh2.3192 per Ksh100.
According to the CBK, accrued interest on the 15-year bond stands at Ksh0.9492 per Ksh100, while the 25-year bond has accrued interest of Ksh2.3192 per Ksh100.
Pricing tables provided in the prospectus guide bidders on clean prices at different yields to maturity, allowing investors to tailor their bids based on prevailing market expectations.
The sale period for the reopened bonds runs from January 22 to February 11, 2026, with all bids required to be submitted by 10:00 a.m. on the final day. The auction will take place on February 11, followed by settlement on February 16, 2026.
Participation rules have been structured to accommodate both small and large investors. Non-competitive bids are capped at between Ksh50,000 and Ksh50 million per Central Securities Depository (CSD) account, while competitive bids start at a minimum of Ksh2 million per CSD account per tenor.
Successful bidders will be required to obtain payment details through the CBK DhowCSD Investor Portal or mobile application on February 13.
The sale period for the reopened bonds runs from January 22 to February 11, 2026, with all bids required to be submitted by 10:00 a.m. on the final day. The auction will take place on February 11, followed by settlement on February 16, 2026.
Participation rules have been structured to accommodate both small and large investors. Non-competitive bids are capped at between Ksh50,000 and Ksh50 million per Central Securities Depository (CSD) account, while competitive bids start at a minimum of Ksh2 million per CSD account per tenor.
Successful bidders will be required to obtain payment details through the CBK DhowCSD Investor Portal or mobile application on February 13.
The central bank noted that it reserves the right to accept or reject bids, either in full or in part, without providing any explanation.
Secondary trading of the bonds will begin on February 16 in multiples of Ksh50,000, offering investors liquidity and the flexibility to exit their positions before maturity.
Secondary trading of the bonds will begin on February 16 in multiples of Ksh50,000, offering investors liquidity and the flexibility to exit their positions before maturity.
The bonds will also qualify for statutory liquidity ratio requirements under the Banking Act, CAP 488, making them suitable investments for commercial banks.
In addition, the bonds will be listed on the Nairobi Securities Exchange, further enhancing transparency and accessibility.
In addition, the bonds will be listed on the Nairobi Securities Exchange, further enhancing transparency and accessibility.
Investors may also use the securities as collateral for loans, with automatic settlement to lenders if not cancelled five days before maturity.
Rediscounting will be available as a last resort at three percentage points above the prevailing market yield or coupon rate, whichever is higher.
Rediscounting will be available as a last resort at three percentage points above the prevailing market yield or coupon rate, whichever is higher.
This feature allows holders to access short-term liquidity in case of urgent cash needs, though at a premium cost.
Coupon payments on the bonds will be made semi-annually, with scheduled dates running up to 2034 for the 15-year bond and 2043 for the 25-year bond.
Coupon payments on the bonds will be made semi-annually, with scheduled dates running up to 2034 for the 15-year bond and 2043 for the 25-year bond.
Analysts say reopening existing bonds, rather than issuing new ones, enables the government to tap into established instruments, extend the maturity profile of public debt, and potentially lower borrowing costs.
“Bond reopenings are a strategic way to deepen liquidity in existing issues while spreading out repayment obligations over a longer period,” said a Nairobi-based fixed-income analyst.
“Bond reopenings are a strategic way to deepen liquidity in existing issues while spreading out repayment obligations over a longer period,” said a Nairobi-based fixed-income analyst.
“They also appeal to long-term investors such as pension funds and insurance companies looking for predictable cash flows.”
The CBK has also encouraged retail investors to participate through the DhowCSD platform, part of broader efforts to democratise access to government securities.
The CBK has also encouraged retail investors to participate through the DhowCSD platform, part of broader efforts to democratise access to government securities.
Retail participation in Treasury bonds has been rising in recent years as more Kenyans seek alternatives to traditional savings products.
The borrowing drive comes against the backdrop of ongoing fiscal pressures, rising debt servicing costs, and the government’s efforts to balance development spending with fiscal consolidation.
For inquiries, investors have been advised to contact the CBK’s Financial Markets Department or email NDO@centralbank.go.ke.
As the February 11 auction date approaches, market players will be closely watching investor appetite for long-term government paper, which could offer important signals about confidence in Kenya’s fiscal outlook and interest rate trajectory.
The borrowing drive comes against the backdrop of ongoing fiscal pressures, rising debt servicing costs, and the government’s efforts to balance development spending with fiscal consolidation.
For inquiries, investors have been advised to contact the CBK’s Financial Markets Department or email NDO@centralbank.go.ke.
As the February 11 auction date approaches, market players will be closely watching investor appetite for long-term government paper, which could offer important signals about confidence in Kenya’s fiscal outlook and interest rate trajectory.
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