The Kenya infrastructure Treasury bonds programme has reopened with the Central Bank of Kenya (CBK) offering KSh150 billion through three reopened infrastructure bonds. The tax-exempt securities are designed to finance public infrastructure projects while providing bond investors with long-term fixed income investment opportunities in Kenya’s capital markets.
Key Overview
- CBK reopens three infrastructure Treasury bonds worth KSh150 billion.
- Offer runs until August 12, 2026.
- Auction and bid submission close on August 12.
- Bonds offer tax-exempt fixed coupon payments.
- Investors settle successful bids on August 17.
- Securities have remaining maturities of up to 16.2 years.
- Infrastructure financing remains a key domestic borrowing strategy.
- Treasury switch auction also runs alongside the bond offer.
Kenya Infrastructure Treasury Bonds Reopened as CBK Targets KSh150 Billion
The Central Bank of Kenya (CBK) has reopened three Kenya infrastructure Treasury bonds with a combined target of KSh150 billion, providing investors with another opportunity to participate in financing the country’s infrastructure development. The reopening forms part of the government’s domestic borrowing programme and is intended to raise funds for priority public infrastructure projects while offering investors attractive long-term fixed income securities.
The bond offer opened on July 30, 2026, and will remain available until August 12, 2026, when the Treasury bond auction will also take place. Successful investors will settle their purchases on August 17, 2026, following the release of allocation details through the CBK DhowCSD Investor Portal and mobile application.
CBK Reopens Three Infrastructure Bonds
The latest issue comprises three reopened infrastructure bonds, each with different remaining maturities and coupon rates to accommodate varying investment preferences.
The securities include IFB1/2019/016, IFB1/2021/018, and IFB1/2021/021, with remaining maturities of approximately 9.3 years, 12.7 years, and 16.2 years, respectively. The bonds will mature on October 8, 2035, March 21, 2039, and August 18, 2042, providing long-term investment opportunities for institutional and retail investors seeking stable returns.
The reopening enables the government to raise additional funding under existing bond issues rather than issuing entirely new securities, supporting efficient management of the Kenya debt market.
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Attractive Tax-Exempt Fixed Income Returns
The reopened Kenya infrastructure Treasury bonds offer attractive fixed coupon rates that remain exempt from withholding tax, making them particularly appealing to long-term bond investors.
The three bonds carry coupon rates of 11.7500%, 12.6670%, and 12.7370%, respectively. In addition to their competitive yields, investors benefit from the tax-exempt status typically associated with Kenya’s infrastructure bonds, improving the effective return compared with many other fixed-income investments.
Coupon payments will be made twice each year beginning in 2026 and continuing until the respective maturity dates, providing investors with predictable income throughout the life of each security.
Amortisation Structure Reduces Maturity Risk
Unlike conventional Treasury bonds that repay the full principal at maturity, the reopened infrastructure bonds incorporate a 50% amortisation structure.
Under this arrangement, part of the principal will be repaid before final maturity, reducing refinancing risk while allowing investors to recover a portion of their capital earlier. The first scheduled partial repayments are expected to occur in 2030 for the first two bonds and 2031 for the longest-dated security.
The amortisation feature enhances the attractiveness of these government securities by improving cash flow for long-term investors while supporting prudent debt management by the government.
Auction Details and Investor Participation
The Treasury bond auction will close on August 12, 2026, with all bids required to be submitted by 10:00 a.m.
Retail investors may submit non-competitive bids starting from KSh50,000, with a maximum investment of KSh50 million. Competitive bids require a minimum investment of KSh2 million for each Central Securities Depository account and bond tenor.
Following the auction, successful investors will receive payment instructions through the CBK DhowCSD Investor Portal or application on August 14, before settlement takes place on August 17.
The structure enables participation by both individual and institutional investors while supporting broad participation in Kenya’s capital markets.
Pricing Reflects Current Market Conditions
The Central Bank of Kenya (CBK) has also published pricing guidance for the reopened bonds.
Clean prices have been provided for yields ranging between 11% and 14.5%, allowing investors to determine pricing based on prevailing market yields. The bonds also carry accrued interest of KSh3.8413, KSh4.6283, and KSh5.6337 per KSh100 face value, depending on the specific bond.
The total purchase price, commonly referred to as the dirty price, combines the clean price with accrued interest. At the respective coupon yields, the indicated dirty prices are KSh103.8033, KSh104.5899, and KSh105.6134 per KSh100 face value.
Domestic Borrowing Programme Continues
The reopening of the Kenya infrastructure Treasury bonds comes alongside another important debt management initiative by the Central Bank of Kenya (CBK).
The Bank is simultaneously conducting a KSh15 billion Treasury switch auction, allowing holders of selected Treasury bills and an existing Treasury bond to exchange their securities for the FXD4/2019/010 bond. The switch programme is intended to improve debt maturity management while supporting the government’s broader domestic borrowing strategy.
Together, the two operations demonstrate CBK’s continued efforts to strengthen liquidity management and maintain an efficient government securities market.
Outlook for Kenya Infrastructure Treasury Bonds
The reopening of the Kenya infrastructure Treasury bonds provides investors with another opportunity to participate in financing national infrastructure development while earning competitive, tax-exempt returns. With KSh150 billion targeted through three long-term infrastructure bonds, the programme remains a key component of Kenya’s domestic borrowing strategy and ongoing efforts to deepen the country’s capital markets.
For bond investors, the combination of attractive coupon rates, semi-annual income, tax exemptions and long maturities offers a compelling fixed income investment opportunity. As infrastructure financing continues to play an important role in Kenya’s economic development, these government securities are likely to remain an important instrument within the country’s debt market.
FAQs
What are the Kenya infrastructure Treasury bonds?
The Kenya infrastructure Treasury bonds are government-issued securities used to finance public infrastructure projects. The current reopening offers three existing infrastructure bonds with a combined target of KSh150 billion.
When does the Treasury bond auction close?
The Treasury bond auction closes on August 12, 2026, with all bids required to be submitted by 10:00 a.m. Settlement for successful bids will take place on August 17, 2026.
What coupon rates do the reopened infrastructure bonds offer?
The three reopened bonds offer fixed coupon rates of 11.7500%, 12.6670%, and 12.7370%. These government securities are also exempt from withholding tax.
Who can invest in the reopened bonds?
Both retail and institutional bond investors can participate. Non-competitive bids start from KSh50,000, while competitive bids require a minimum investment of KSh2 million per bond tenor through the Central Securities Depository system.
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