CBK Invites Kenyans to Loan Govt $70 Billion via Reopened Bonds

The Central Bank of Kenya (CBK) has declared the relaunch of three government bonds.

The aim of the government is to generate KSh 70 billion for budgetary assistance through the issuance of the FXD1/2020/15, FXD1/2022/10, and FXD1/2023/10 bonds.

The funds raised from the reinstated bonds will be utilized to meet the government’s fiscal needs.

The government is providing the bonds at a reduced price, featuring an average annual interest rate of 15.55%.

The bond designated as FXD1/2020/15 has a remaining maturity of approximately 11.7 years, whereas FXD1/2022/10 and FXD1/2023/10 have respective remaining maturities of about 7.4 years and 9.8 years.

What is the deadline for the Treasury bond offering?

As per the CBK, the offering phase will take place between March 18, 2025, and March 26, 2025.

Investors are invited to submit their offers within this timeframe, as the auction is scheduled for March 27, 2025. Following this date, trading will commence on the Nairobi Securities Exchange (NSE) for those who have participated.

CBK mentioned that these bonds are available for all qualified investors such as individuals, corporations, and institutions.

They will be provided in increments of KSh 50,000, enabling individual investors to take part in the offering.

What steps should one follow to take part in the Treasury Bill auction?

Potential investors have the option to submit their offers through any authorized commercial bank or directly using the CBK’s Central Depository System (CDS) account.

The smallest investment allowed is KSh 50,000, which makes it easy for many different investors to participate.