Fahamisha Investing Newsletter
Central Bank of Kenya has reopened 2 fixed-coupon Treasury Bonds in December 2025. Both are taxable bonds (not tax exempt IFBs-Infrastructure bonds). They offer stable semi-annual income for investors.
- Deadlines to buy on DhowCSD: 10 AM Wednesday, 3 December 2025
- Deadline to make payment via bank: 2 PM Monday, 8 December 2025
- Minimum investment amount: Ksh. 50,000
- Note: You invest in multiples of sh. 50,000 (e.g. 100k, 150k, but not 75k)
SDB1/2011/030
- Maturity date: 21 January 2041 (15.2 years remaining before principal is paid back)
- Coupon interest rate: 12.0% per year before tax, paid in February and August
- After-tax return: 10.80% per year after tax (interest received after 10% withholding tax is deducted)
FXD1/2021/025
- Maturity date: 9 April 2046 (20.4 years remaining before principal is paid back)
- Coupon interest rate: 13.924% per year before tax, paid in May and November
- After-tax return: 12.5316% 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 | SDB1/2011/030 | FXD1/2021/025 |
| Years to Maturity remaining | 15.2 | 20.4 |
| Invested Amount | Ksh 1,000,000 | Ksh 1,000,000 |
| Coupon Interest rate (before tax) per year | 12.0% | 13.924% |
| Interest Amount (before tax) per year | Ksh 120,000 | Ksh 139,240 |
| Withholding tax (10%) | -Ksh 12,000 | -Ksh 13,924 |
| Interest Amount (AFTER tax) per year | Ksh 108,000 | Ksh 125,316 |
| Effective interest rate AFTER TAX | 10.80% | 12.536% |
| Interest Amount (AFTER tax) – every 6 months | Ksh 54,000 | Ksh 62,658 |
| Months when interest is paid | February , August | May, November |
Source : CBK Prospectus link Fahamisha Investing Analysis
Deadlines
You can place your bid directly on the DhowCSD Portal (link) and complete payment through your bank.
| Date and time | |
| Deadline to place bid (buy) on DhowCSD portal | 10.00 a.m. Wednesday, 3 December 2025 |
| Deadline to make payment | 2.00 p.m. Monday, 8 December 2025 |
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. SDB1/2011/030)
- 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
2nd November 2025 FXD Treasury Bonds Issue →
| November 2025 issue (Reopened bonds) | FXD3/2019/015 | FXD1/2022/025 |
| Years to maturity | 8.7 years (July 2034) | 21.9 years (Sept 2047) |
| Coupon Interest rate (before tax) per year | 12.34% | 14.1880% |
| Coupon Interest rate (after tax) per year | 11.1060% | 12.7692% |
| Months of coupon payment | January, July | April October |
1st November 2025 FXD Treasury Bonds Issue →
This bond auction was open from 23 October 2025 to 5 November 2025.
| November 2025 (Reopening) | FXD1/2012/020 | FXD1/2022/025 |
| 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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