The Central Bank of Kenya (CBK), acting as the fiscal agent for the Republic of Kenya, has issued a prospectus inviting bids for three re-opened Infrastructure Treasury Bonds (IFB) aimed at raising a combined target of KES 150 billion. The funds generated from this auction are designated to finance key infrastructure projects across the country.

Key details of the bond offerings

The re-opened issues cover 16-year, 18-year, and 21-year tenors:
  • IFB1/2019/016 (16-Year Tenor): Has a remaining maturity of 9.3 years, maturing on October 8, 2035. It offers a coupon rate of 11.7500%.
  • IFB1/2021/018 (18-Year Tenor): Features 12.7 years to maturity, set to expire on March 21, 2039. It carries a coupon rate of 12.6670%.
  • IFB1/2021/021 (21-Year Tenor): Has 16.2 years remaining until its final maturity on August 18, 2042. It carries a coupon rate of 12.7370%.
As infrastructure bonds under Kenyan law, interest income for all three issues is exempt from withholding tax.

Bidding structure and auction timeline

The sale period opened on July 30, 2026, and will close on Wednesday, August 12, 2026, at 10:00 AM. The auction and settlement details are scheduled as follows:
  • Auction Date: Wednesday, August 12, 2026
  • Payment Notification: Successful bidders will access payment keys and total amounts due via the CBK DhowCSD Portal/App on Friday, August 14, 2026.
  • Settlement Date: Monday, August 17, 2026

Participation limits

  • Non-Competitive Bids: Minimum investment of Ksh. 50,000.00 up to a maximum of KES 50,000,000.00.
  • Competitive Bids: Minimum requirement of Ksh. 2,000,000.00 per CSD account per tenor.

Pricing terms

Each bond structure includes a 50% principal amortization prior to final maturity:
  • IFB1/2019/016: 50% amortization on October 14, 2030.
  • IFB1/2021/018: 50% amortization on April 1, 2030.
  • IFB1/2021/021: 50% amortization on September 1, 2031.

Accrued Interest (AI) Rules

Because these are re-opened paper issues, purchases attract accrued interest per KES 100:
  • IFB1/2019/016: Ksh. 3.8413 per KES 100.
  • IFB1/2021/018: Ksh. 4.6283 per KES 100.
  • IFB1/2021/021: Ksh. 5.6337 per KES 100.
Note: Settlement dirty price is calculated by adding the accrued interest to the quoted clean price.

Secondary market and investor provisions

Secondary trading for all three tranches will commence on Monday, August 17, 2026, in multiples of Ksh. 50,000.00. The securities will be listed on the Nairobi Securities Exchange (NSE).
  • Liquidity: These bonds qualify toward statutory liquidity ratio requirements for commercial banks and non-bank financial institutions.
  • Collateral: Investors may pledge these government securities as loan collateral with regulated financial entities.
  • Rediscounting Facility: As a last resort, CBK offers rediscounting at 3% above the prevailing market yield or coupon rate (whichever is higher) via the DhowCSD portal.