The Central Bank of Kenya (CBK) has announced the opening of a KSh 50 billion Tap Sale of Treasury Bonds, offering investors an opportunity to participate in a limited three-day window beginning Tuesday, 19 August 2025.
According to the notice issued by the CBK’s Director of Financial Markets, David Luusa, the sale will run until Thursday, 21 August 2025, or until the quantum on offer is fully allocated, whichever comes first. The Tap Sale is being conducted on a first-come-first-served basis, a feature expected to heighten competition among investors.
After turning down KES 228.4 billion (about 70.7% of bids) in the August bond reopening, the government is now looking to raise KES 50 billion through a tap sale of the same bonds.
The Tap Sale involves two Treasury Bonds—IFB1/2018/015 and IFB1/2022/019—which were previously auctioned and are now being reopened to meet growing investor demand.
IFB1/2018/015 carries a coupon rate of 12.5000%, an adjusted average price of 99.3937, and an average yield of 12.9934%.
IFB1/2022/019 carries a coupon rate of 12.9650%, an adjusted average price of 94.8458, and an average yield of 13.9091%.
Investors will pay prices determined at the average accepted rates of the auction conducted on 18 August 2025, with bids adjusted for accrued interest.
Settlement for successful bids is scheduled for Monday, 25 August 2025, with payments due by 2:00 pm on the same day. Bids will be allotted strictly on a first-come-first-served basis, meaning that speed of application will be crucial for investors looking to secure an allocation.
CBK will release details of successful bids through the DhowCSD Investor Portal/App under the transactions tab on Friday, 22 August 2025.
A tap sale is a financial mechanism where additional bonds are issued after an initial auction, often using pre-existing terms such as coupon rate and maturity, to raise more funds on demand. Unlike standard weekly auctions, a tap sale is done on a first-come, first-served basis, enabling the issuer to manage liquidity needs or respond to fluctuating demand without launching a brand-new bond issue.
Globally, tap sales are used by governments such as the US Treasury, especially for highly demanded bills or notes, and by sovereign issuers like Germany (through its “tap” expansion of existing bonds) to flexibly raise capital in volatile markets.
For investors, these instruments offer a relatively secure investment with predictable returns, underpinned by the government’s full faith and credit. Given Kenya’s current macroeconomic environment characterised by persistent inflationary pressures, a weakening shilling, and fiscal consolidation efforts the bonds provide an attractive risk-adjusted return compared with many private-sector alternatives.
The issuance comes at a time when Kenya is actively managing its debt portfolio, with the government seeking to balance external borrowing with domestic fundraising to avoid overexposure to volatile global capital markets.
Key Dates for Investors to note
Period of Sale: 19–21 August 2025 (or until fully subscribed)
Settlement Date: 25 August 2025
Payment Deadline: 25 August 2025 at 2:00 pm
Auction Results Release: 22 August 2025
Defined Pricing Metrics
Average Yield
IFB1/2018/015: 12.9934%
IFB1/2022/019: 13.9991%
Adjusted Average Price (per KES 100)
IFB1/2018/015: KES 99.3937
IFB1/2022/019: KES 94.8458
Coupon Rates
IFB1/2018/015: 12.5000%
IFB1/2022/019: 12.9650%
Investors interested in participating are urged to act promptly due to the first-come-first-served mechanism.
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