CBK Reopens 3 Tax-Free Infrastructure Bonds; How to Invest

The Central Bank of Kenya (CBK) has reopened three tax-free infrastructure bonds as it seeks to raise Ksh150 billion to finance infrastructure projects across the country.

The reopened bonds offer investors annual tax-free coupon rates of 11.75%, 12.667%, and 12.737%, with the sale running from July 30 to August 12, 2026. 

Successful bidders will be required to settle their payments by Monday, August 17, 2026.

Infrastructure bonds are among the most attractive government securities because the interest earned is exempt from withholding tax.

The first bond on offer is a 16-year bond that was originally issued in 2019. It carries a tax-free coupon rate of 11.75%, with 9.3 years remaining to maturity. Its amortisation date is October 14, 2030. 

The second is an 18-year Infrastructure Bond first issued in 2021. It offers a 12.667% annual tax-free return and has 12.7 years remaining before maturity. Its amortisation date is April 1, 2030.

The third bond is a 21-year Infrastructure Bond, also first issued in 2021. It offers the highest coupon among the three at 12.737%, with 16.2 years remaining to maturity. Its amortisation date is September 1, 2031.

Also Read: CBK Introduces M-Pesa Option When Buying Bonds

How to Invest

Investors can submit bids through the CBK DhowCSD platform by following these steps:

Open a DhowCSD account through the CBK website or the DhowCSD mobile application if you do not already have one.

Sign up or log into your account and navigate to the auctions section.

Review the prospectuses for the three reopened infrastructure bonds and select the one that matches your investment objectives.

Submit your bid before the deadline of 10 am on Wednesday, August 12, 2026.

If your bid is successful, log into your DhowCSD account on August 14 to obtain your payment key and the exact amount payable.

Make payment before the settlement date, August 17, 2026, using the payment key together with your CSD account number.

Read more: Can Bonds Pay Your Rent? How Much Investment You Need to Earn Between Ksh15K & Ksh30K Per Month 

Bond Features

1. These are reopened bonds

Although the bonds were initially issued several years ago, investors purchasing them today will only earn interest for the remaining period to maturity, not the original tenor.

For example, the 16-year bond now has 9.3 years remaining, while the 18-year and 21-year bonds have 12.7 years and 16.2 years remaining, respectively.

2. The bonds are amortised

All three infrastructure bonds have a 50% amortisation structure. Unlike conventional bonds, where investors receive their full principal only at maturity, amortised bonds gradually repay part of the principal before the final maturity date.

For the reopened bonds, 50% of the principal will be repaid on the scheduled amortisation date, after which interest payments will be calculated on the remaining outstanding balance.

If you invest less than Ksh1 million, your entire principal will be repaid on the amortisation date. If you invest more than Ksh1 million, only 50% of your principal will be repaid then, and future interest will be calculated on the remaining balance.

3. Minimum investment starts at Ksh50,000

Retail investors can participate through non-competitive bids, which have a minimum investment of Ksh50,000 and a maximum of Ksh50 million.

Competitive bids require a minimum investment of Ksh2 million per CSD account for each bond tenor.