The Central Bank of Kenya (CBK) has announced a bond sale worth KES 70 billion, providing both individual and institutional investors an opportunity to invest in government bonds. This sale, which runs from January 23, 2025, to February 12, 2025, will fund critical infrastructure projects for the 2024/2025 fiscal year, aiming to support the country’s economic development.
The sale offers two bond options catering to different investment preferences. The 11.8-year bond (IFB1/2022/14) features a coupon rate of 13.9380%, making it an appealing option for medium-term investors. In contrast, the 15.1-year bond (IFB1/2023/17) offers a slightly higher coupon rate of 14.3990%, ideal for long-term investors.
With a minimum investment of KES 50,000, the bonds are accessible to a wide range of investors. The bonds are also tax-free, offering a significant advantage over other investment vehicles. “These bonds provide a secure and rewarding investment opportunity for Kenyans who want to contribute to the country’s infrastructure development,” CBK said in a statement.
CBK is accepting both competitive and non-competitive bids. Non-competitive bidders can invest up to KES 50 million per Central Securities Depository (CSD) account per tenor, though State corporations, public universities, and Semi-Autonomous Government Agencies are exempt from this limit. For competitive bids, the minimum investment is KES 2 million per CSD account per tenor.
The auction for the bonds will take place on February 12, 2025, and successful investors can access their payment details through the DhowCSD Investor Portal or App by February 14, 2025. CBK has emphasized the importance of meeting payment deadlines, warning that failure to do so may result in suspension from future participation in government securities.
Secondary trading for the bonds will begin on February 17, 2025, with transactions conducted in multiples of KES 50,000. Investors are advised to ensure their CSD accounts are active to participate fully in the sale.
