Central Bank of Kenya opens Sh60 billion Treasury bond sale

The Central Bank of Kenya (CBK) has reopened the sale of two fixed-coupon Treasury bonds to raise Sh60 billion for government budget financing. The offering includes two securities with different maturities: a bond maturing on March 21, 2039, with a 12.873% coupon rate, and a bond maturing on March 13, 2056, offering a 12.5% coupon rate.

The auction will be conducted via a multi-price system, with the offer period running from September 8 until 10:00 am on September 16. The auction and subsequent payment settlement are scheduled for September 21. Investors must use active DhowCSD accounts to participate. Non-competitive bids can range from Sh50,000 to a maximum of Sh50 million, while competitive bids require a minimum of Sh2 million per CSD account for each bond tenor.

Successful investors will be required to obtain payment details through the DhowCSD Investor Portal or mobile application on September 18. The CBK has warned that defaulters on payments may be suspended from future investments in government securities. The bonds will be listed on the Nairobi Securities Exchange.