The Kenyan government has reopened two Treasury bonds in February 2026, offering investors returns of up to 13.4% per year. Even better? You don’t need millions to get started — the minimum investment is just KSh 50,000.
In this article, we break down which bonds are on offer, how much you can earn, key dates to know, and who these bonds are ideal for, using simple, beginner-friendly language.
Treasury Bonds Alert: What’s Happening in February 2026?
The Central Bank of Kenya (CBK) is seeking to raise KSh 50 billion by reopening two existing fixed-rate Treasury bonds. This means investors can buy into previously issued bonds at attractive interest rates.
These bonds pay interest every six months, making them a popular option for investors looking for predictable passive income.
The Two Treasury Bonds on Offer
1. FXD3/2019/015 – 15-Year Treasury Bond
- Coupon (interest) rate: 12.34% per year
- Years remaining to maturity: 8.4 years
- Maturity date: 10 July 2034
- Tax: 10% withholding tax (fixed-rate bond)
This bond is suitable for medium- to long-term investors who want stable income without locking their money away for decades.
2. FXD1/2018/025 – 25-Year Treasury Bond
- Coupon (interest) rate: 13.4% per year
- Years remaining to maturity: 17.3 years
- Maturity date: 2043
- Tax: 10% withholding tax (fixed-rate bond)
This bond offers a higher return and is ideal for long-term goals such as retirement or legacy planning.
How Much Will You Earn? (Real Examples)
If You Invest KSh 100,000
FXD3 (12.34%)
- KSh 12,340 per year before tax
- KSh 6,170 every 6 months before tax
FXD1 (13.4%)
- KSh 13,400 per year before tax
- KSh 6,700 every 6 months before tax
If You Invest KSh 1,000,000
FXD3 (12.34%)
- KSh 123,400 per year before tax
- KSh 61,700 every 6 months before tax
FXD1 (13.4%)
- KSh 134,000 per year before tax
- KSh 67,000 every 6 months before tax
Remember: A 10% withholding tax applies, so your take-home amount will be slightly lower.
Treasury Bonds vs. Money Market Funds: Which is Better?
What Are Treasury Bonds? (Beginner Explanation)
Treasury bonds are debt instruments issued by the government to borrow money. When you invest:
- You lend money to the government
- The government pays you interest every six months
- At maturity, you get your principal amount back
Treasury bonds are considered one of the lowest-risk investment options in Kenya, though no investment is 100% risk-free.
Key Dates You Must Know
- Bid submission deadline: 11 February 2026 at 10:00 a.m.
- Minimum investment (non-competitive bid): KSh 50,000
- Maximum (non-competitive bid): KSh 50 million
- Total amount CBK wants to raise: KSh 50 billion
Missing the deadline means waiting for the next bond auction.
How to Invest in Treasury Bonds in Kenya
To invest, you need a DhowCSD account, which allows you to buy government securities directly.
The process is fully digital and can be done via the DhowCSD mobile app or online platform.
For assistance on creating a DhowCDS account, book a session here.
Who Are These Bonds Ideal For?
These February 2026 Treasury bonds are perfect for:
- Investors seeking steady, predictable income
- People saving for retirement or long-term goals
- Investors tired of volatile investments
- Anyone looking for passive income paid every six months
Because these are government bonds, they are among the most secure and predictable investments available in Kenya.
Final Recap
- FXD3/2019/015: 12.34% interest, matures in 2034
- FXD1/2018/025: 13.4% interest, matures in 2043
- Minimum investment: KSh 50,000
- Interest paid: Every 6 months
- Deadline: 11 February 2026
Before investing, always do your own research and ensure the bond matches your financial goals.