Step by step guide to investing in Treasury Bonds in Kenya

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Treasury bonds are a very secure, medium- to long-term investment. Treasury bonds offer interest payments semi-annually throughout the tenor of the bond.

The Central Bank of Kenya auctions Treasury bonds on a monthly basis. CBK offers a variety of bonds throughout the year. In this case investors are able to regularly check for upcoming auctions.

Investors Bid by choosing the Interest or the Competitive rates they would like to have for that bond. The Central Bank then decides what bids it will accept using an average of those rates.

Most Treasury bonds in Kenya have a fixed rate, meaning that the interest rate does not change during the life time of the bond.

Any individuals and corporate bodies holding an account with any commercial bank can invest in treasury bonds or even invest via the central bank of Kenya.



Treasury bonds are units of government debt, this means that you are investing in the Government and are assured of payment and returns.

Regular Returns

Most Treasury bonds have semi-annual interest payments. This allows investors to receive assured returns every six months.


The Central Bank auctions a variety of Treasury bonds this enables investors find bonds that fit their personal needs.

Auctioned Monthly

Treasury bonds are auctioned each and every month; this provides ample investment opportunities to cater for your financial needs.

Step to investing

  • Open a CDS account with the Central Bank or invest through any local commercial bank where you own an account
  • Choose a bond to invest in, you’ll need to consider what is available at the time and how long you want to commit.
  • Complete and Submit a treasure bond Application Form
  • Look out for Auction Results –which are published, through Treasury Mobile Direct (TMD), Twitter and in our statistics section in the CBK website
  • submit your payments, in the amounts specified through cash or banker’s cheques          
  • Upon maturity Investors will receive interest payment semi-annually in their commercial bank account throughout the tenor of the bond. On maturity, the investor will receive the last interest payment plus the face value of the Bond

Point to note

Successful applicants who may fail to submit payments within the payment period can be barred from future investment in any government securities.

Bottom line

The Government Issue bonds as a way of raising money to attend to its financial needs. Bonds are a great option for anyone who does not want to be exposed to volatility of stocks since you will be able to receive a predictable income on interest.

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