Fahamisha Newsletter
After last week’s auction closed (see here), Central Bank of Kenya has reopened 2 additional fixed-coupon (FXD) Treasury Bonds this November 2025. Both are FXD bonds (Fixed interest that is taxable), not IFBs (Infrastructure bonds; interest is not taxed).
The minimum amount you can invest in Kenyan Treasury Bonds is sh. 50,000, and you invest in multiples of sh. 50,000 (i.e. 50k, 100k, 150k, but not 75k)
FXD3/2019/015
- Maturity date: 10 July 2034 (8.7 years remaining before principal is paid back)
- Coupon interest rate: 12.34% per year before tax, paid in January and July
- After-tax return: 11.106 % per year after tax (interest received after 10% withholding tax is deducted)
FXD1/2022/025
- Maturity date: 23 September 2047 (21.9 years remaining before principal is paid back)
- Coupon interest rate: 14.1880 % per year before tax, paid in April and October
- After-tax return: 12.7692 % per year after tax (interest received after 10% withholding tax is deducted)
Example: How much do you earn if you invest sh. 1 Million?
| Bond | FXD3/2019/015 | FXD1/2022/025 |
| Years to Maturity remaining | 8.7 | 21.9 |
| Invested Amount | Ksh 1,000,000 | Ksh 1,000,000 |
| Coupon Interest rate (before tax) per year | 12.34% | 14.1880% |
| Interest Amount (before tax) per year | Ksh 123,400 | Ksh 141,880 |
| Withholding tax (10%) | -Ksh12,340 | -Ksh14,188 |
| Interest Amount (AFTER tax) per year | Ksh 111,060 | Ksh 127,692 |
| Effective interest rate AFTER TAX | 11.1060% | 12.7692% |
| Interest Amount (AFTER tax) – every 6 months | Ksh 55,530 | Ksh 63,846 |
| Months when interest is paid | January, July | April, October |
Deadlines
You can place your bid directly on the DhowCSD Portal (link) and complete payment through your bank.
| Date | Time | |
| Deadline to place bid (buy) on DhowCSD portal | Wednesday, 19 November 2025 | 10:00 a.m. |
| Deadline to make payment | Monday, 24 November 2025 | 2:00 p.m. |
If you’d like help reviewing your options or placing a bid, message us on +254 792 68 69 08 or email ask@fahamisha.com.
Notes on taxation of bonds:
- Withholding Tax rates
- Interest on FXD bonds is taxed at 10% if the bond had over 10 years to maturity when it was first issued (e.g. FXD1/2012/020)
- If the bond had less than 10 years to maturity when it was first issued, Interest is taxed at 15% (e.g. FXD1/2024/003)
- Calculating return after tax
- If a bond pays 12% interest and tax is 10%, what does an investor actually earn after tax?
- Assume you invest sh. 100,000
- Interest earned before tax is 12% * 100,000 = 12,000 per year
- The tax is calculated on the interest amount:
- 10% tax rate * 12,000 interest = 1,200 tax
- So the net interest earned is:
- 12,000 interest before tax – 1,200 tax = 10,800 interest after tax
- If a bond pays 12% interest and tax is 10%, what does an investor actually earn after tax?
Past bond issues
1st November 2025 FXD Treasury Bonds Issue →
This bond auction was open from 23 October 2025 to 5 November 2025.
| October 2025 issue (Reopened bonds) | FXD1/2012/020 | FXD1/2022/015 |
| Years to maturity | 7 years (Nov 2032) | 11.4 years (Apr 2037) |
| Coupon Interest rate (before tax) per year | 12.0% | 13.942% |
| Coupon Interest rate (after tax) per year | 10.80% | 12.5478% |
| Months of coupon payment | May, November | April October |
October 2025 FXD Treasury Bonds →
| October 2025 issue (Reopened bonds) | FXD1/2018/015 | FXD1/2021/020 |
| Years to maturity | 7.7 years (May 2033) | 15.9 years (July 2041) |
| Coupon Interest rate (before tax) per year | 12.65% | 13.444% |
| Coupon Interest rate (after tax) per year | 11.385% | 12.0996% |
| Months of coupon payment | May, November | February, August |
September 2025 FXD Treasury Bonds →
| October 2025 (Reopened bonds) | FXD1/2018/020 | FXD1/2022/025 | SDB1/2011/030 |
| Years to maturity | 12.5 years (March 2038) | 22.2 years (Sep 2047) | 15.5 years (Jan 2041) |
| Coupon Interest rate (before tax) per year | 13.2% | 14.188% | 12% |
| Coupon Interest rate (after tax) per year | 11.88% | 12.7692% | 10.8% |
| Months of coupon payment | March, September | April, October | February, August |
August 2025 IFBs – Infrastructure Bonds →
| August 2025 issue (Reopened bonds) | IFB1/2018/015 | IFB1/2022/019 |
| Years to maturity | 7.5 years (Jan 2033) | 15.6 years (Jan 2041) |
| Coupon Interest rate (before tax) per year | 12.5% | 12.965% |
| Coupon Interest rate (after tax) per year | 12.5% | 12.965% |
| Months of coupon payment | January, July | February, August |
About Fahamisha Investing (Kenya)
Fahamisha is a Kenya-based financial planning practice that helps professionals earn passive income from their investments.
At Fahamisha, we help professionals like you to:
- Create and implement personal investment strategies
- Build investment portfolios earning passive income every month
- Access the secondary market to buy Infrastructure bonds (IFBs) that pay 12-14% interest per year, tax free.
Fahamisha is led by Annette Mumbi, CFA, an investment advisor with 10+ years’ experience. Follow her on LinkedIn via this link
If you’d like guidance on building your passive income portfolio, call or message +254 792 68 69 08, or visit www.fahamisha.com.
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