Government Seeks Ksh50 Billion Loan From Kenyans Through Treasury Bonds
The Kenyan government is looking to raise Ksh50 billion from citizens by issuing new treasury bonds, as the 2025/26 financial year officially kicks off.
In a public notice released on Wednesday, the Central Bank of Kenya (CBK) announced that the funds will go toward supporting the national budget.
The CBK said the Ksh50 billion target will be met through a bond sale involving two long-term fixed-rate bonds: a 20-year and a 25-year bond.
The bond auction, which began on June 24, will run until July 9, 2025. The fixed interest rates—or coupon rates—for the two bonds have been set at 13.2% for the 20-year bond and 13.4% for the 25-year bond.
“All successful applicants are required to access their payment details via the CBK DhowCSD Investor Portal or App under the transactions tab on Friday, July 11, 2025,” said the CBK in the notice.
It also warned that investors who fail to make payment after winning their bids could be barred from taking part in future government securities auctions.
According to the CBK, the 20-year bond is scheduled to mature on March 1, 2038, while the 25-year bond will mature on May 25, 2043.
To make it easier for ordinary citizens to take part, the CBK has allowed non-competitive bids to start from as little as Ksh50,000.
However, investors who want to make competitive bids must place a minimum of Ksh2 million through their Central Securities Depository (CSD) account.
The settlement date for the bond transactions is set for Sunday, July 14, 2025.
The CBK also noted that it holds the right to accept applications in whole or in part, or to reject them entirely, without offering any explanation.
This move comes after Treasury Cabinet Secretary John Mbadi presented the new national budget last month. In the budget, the government announced its plan to borrow a total of Ksh923.2 billion to fill the budget deficit.
Of this amount, Ksh287.7 billion is expected to come from external sources, while the remaining Ksh635.5 billion will be sourced locally, including from the public through such bond auctions.
Kenya’s 2025/26 budget is the largest in the country’s history, standing at Ksh4.2 trillion. The National Treasury projects that it will collect Ksh3.322 trillion in revenue during the financial year.
This will include ordinary revenue such as taxes, income from government services (known as appropriations-in-aid), and grants from development partners.
In addition to raising funds domestically, Kenya is currently negotiating a new financial support arrangement with the International Monetary Fund (IMF).
This new agreement is intended to take over from the $3.6 billion (approximately Ksh466 billion) Extended Fund Facility and Credit Facility, which officially expired in June 2025.
These combined efforts show that the government is aggressively seeking financial support both locally and internationally to meet its ambitious spending plans for the year.
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