CBK Opens Bids for High-Interest 30-Year and 25-Year Treasury Bonds

The Central Bank of Kenya (CBK) has opened bidding for two long-term government securities, offering investors a fresh opportunity to lock in returns on 30-year and 25-year fixed-coupon Treasury bonds. The sale, which targets budgetary support for the National Treasury, runs until Wednesday, December 3, 2025.

CBK published the prospectus on its official X platform on Monday, outlining the terms and conditions for the reopened bonds.

“Prospectus for re-opened 30 and 25-year fixed coupon treasury bonds… The Central Bank of Kenya, acting in its capacity as fiscal agent for the Republic of Kenya, invites bids for the above bonds,” the notice stated.

Bond Details and Coupon Rates

The reopened 30-year bond, SDB1/2011/030, attracts a 12% fixed coupon, while the 25-year bond, FXD1/2021/025, carries a 13.9240% coupon rate. Both securities will be subject to the standard 10% withholding tax applied to interest income.

The bonds have extended maturity timelines, with the 30-year bond maturing on January 21, 2041, and the 25-year bond set to mature on April 9, 2046.

Key Dates for Investors

CBK advised interested investors to submit their bids by 10:00 a.m. on December 3, 2025, the same day the auction will take place. Successful bidders will receive their payment keys via the DhowCSD Investor Portal or App on Friday, December 5.

Settlement for both securities is scheduled for December 8, 2025.

The notice also emphasized CBK’s discretion in the auction process: “Defaulters may be suspended from subsequent investment in Government Securities,” it warned, adding that the Bank reserves the right to accept or reject bids without offering reasons.

Minimum Bid Amounts and Trading Rules

Non-competitive bids require a minimum of KSh 50,000, while competitive bidders must commit at least KSh 2 million per CSD account.

Secondary trading for both bonds will begin on Monday, December 8, 2025, in multiples of KSh 50,000.

Accrued Interest and Pricing Breakdown

CBK also released detailed pricing tables showing clean prices at various yields.

For the 30-year bond:

• Accrued Interest (AI): KSh 3.9231 per KSh 100

• Example: At a quoted yield of 12.0000%,

  • Dirty Price = Clean Price (KSh 99.9603) + AI (KSh 3.9231)

For the 25-year bond:

• Accrued Interest (AI): KSh 1.3388 per KSh 100

• Example: At a quoted yield of 13.9240%,

  • Dirty Price = Clean Price (KSh 99.9639) + AI (KSh 1.3388)

CBK further explained how the bonds will be handled in cases of rediscounting, reopening, and pledging before maturity.

Investor Appetite Expected to Be Strong

With the government under pressure to bridge its budget deficit, the bond issue is expected to attract strong demand from banks, pension funds, insurers, and high–net-worth investors seeking stable long-term returns.

The attractive coupon rates, combined with Kenya’s ongoing need to refinance debt and support development plans, position the two securities as key investment options heading into the new year.

Below is a detailed prospectus for Re-Opened 30- and 25-Year Fixed Coupon Treasury Bonds.

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