Fahamisha Investing Newsletter
Central Bank of Kenya has reopened 3 Infrastructure Bonds (IFBs) in the August 2026 auction. The interest on IFBs is not taxed (unlike FXD bonds which are taxable bonds). They offer stable semi-annual income for investors.
- Deadline to buy on DhowCSD: 10 AM Wednesday, 12 August 2026
- Deadline to make payment via bank: 2 PM Monday, 17 August 2026
- Minimum investment amount: Ksh. 50,000. You invest in multiples of sh. 50,000 (e.g. 100k, 150k, but not 75k)
- Note on IFBs: The amount you invest in an Infrastructure bond determines when your principal will be paid back.
- If you invest Ksh. 1 Million or less, your principal amount invested will be paid earlier than the final maturity date.
- If you invest above KSh. 1 Million (e.g. 1.1M, 2M, etc), a portion of the principal is paid early, and the balance is paid on the final maturity date.
- Specific maturity dates for each bond are provided below.
IFB1/2019/016
- Maturity date A: If you invest KSh. 1 Million or less:
- 100% will be paid on 14 October 2030 (4.2 years remaining before principal is paid back)
- Maturity date B: If you invest KSh. 1.05 Million or more:
- 50% will be paid on 14 October 2030 (4.2 years remaining before principal is paid back)
- Balance will be paid on 8 October 2035 (9.3 years remaining before principal is paid back)
- Coupon interest rate: 11.75% per year before tax, paid in April and October
- After-tax coupon return: 11.75% per year interest received. No withholding tax is deducted on interest from infrastructure bonds.
- Link to the initial prospectus with maturity dates: IFB1/2019/16
IFB1/2021/018
- Maturity date A: If you invest KSh. 1 Million or less:
- 100% will be paid on 1 April 2030 (3.6 years remaining before principal is paid back)
- Maturity date B: If you invest KSh. 1.05 Million or more:
- 50% will be paid on 1 April 2030 (3.6 years remaining before principal is paid back)
- Balance will be paid on 21 March 2039 (12.7 years remaining before principal is paid back)
- Coupon interest rate: 12.667% per year before tax, paid in April and October
- After-tax coupon return: 12.667% per year interest received. No withholding tax is deducted on interest from infrastructure bonds.
- Link to the initial prospectus with maturity dates: IFB1/2021/018
IFB1/2021/021
- Maturity date A: If you invest KSh. 1 Million or less:
- 100% will be paid on 1 September 2031 (5 years remaining before principal is paid back)
- Maturity date B: If you invest KSh. 1.05 Million or more:
- 50% will be paid on 1 September 2031 (5 years remaining before principal is paid back)
- Balance will be paid on 18 August 2042 (16.2 years remaining before principal is paid back)
- Coupon interest rate: 12.737% per year before tax, paid in March and September
- After-tax coupon return: 12.737% per year interest received. No withholding tax is deducted on interest from infrastructure bonds.
- Link to the initial prospectus with maturity dates: IFB1/2021/021
Example: How much do you earn if you invest sh. 1 Million?
Click the image below to view the example.
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 AM Wednesday, 12 August 2026 |
| CBK communication on amount to pay and payment reference key | Friday, 14 August 2026 |
| Deadline to make payment | 2:00 PM Monday, 17 August 2026 |
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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. FXD1/2022/025)
- 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 July 2026 FXD Treasury Bonds Issue →
| 2nd July 2026 issue (Reopened bonds) | FXD1/2019/020 | FXD1/2022/025 |
| Years to maturity | 12.8 years | 21.4 years |
| Coupon Interest rate (before tax) per year | 12.873% | 14.188% |
| Coupon Interest rate (after tax) per year | 11.5857% | 12.7692% |
| Months of coupon payment | April, October | April, October |
1st July 2026 FXD Treasury Bonds Issue →
| 1st July 2026 issue (Reopened bonds) | FXD1/2022/010 | FXD1/2021/020 | FXD1/2026/030 |
| Years to maturity | 5.8 years | 15.2 years | 29.9 years |
| Coupon Interest rate (before tax) per year | 13.49% | 13.444% | 12.5% |
| Coupon Interest rate (after tax) per year | 12.141% | 12.0996% | 11.25% |
| Months of coupon payment | May, November | February, August | April, October |
2nd June 2026 FXD Treasury Bonds Issue →
| 2nd June 2026 issue (Reopened bonds) | FXD1/2018/020 | FXD1/2021/025 |
| Years to maturity | 11.8 years | 20 years |
| Coupon Interest rate (before tax) per year | 13.2000% | 13.9240% |
| Coupon Interest rate (after tax) per year | 11.88% | 12.5316% |
| Months of coupon payment | March, September | May, November |
1st June 2026 FXD Treasury Bonds Issue →
| 1st June 2026 issue (Reopened bonds) | FXD1/2020/015 | FXD1/2018/025 |
| Years to maturity | 8.7 years | 17.1 years |
| Coupon Interest rate (before tax) per year | 12.7560% | 13.4000% |
| Coupon Interest rate (after tax) per year | 11.4804% | 12.0600% |
| Months of coupon payment | February, August | June, December |
2nd May 2026 FXD Treasury Bonds Issue →
| 2nd May 2026 issue (Reopened bonds) | FXD3/2019/015 | FXD1/2021/020 |
| Years to maturity | 8.3 years | 15.3 years |
| Coupon Interest rate (before tax) per year | 12.340% | 13.444% |
| Coupon Interest rate (after tax) per year | 11.106% | 12.0996% |
| Months of coupon payment | January, July | February, August |
1st May 2026 FXD Treasury Bonds Issue →
| 1st May 2026 issue (Reopened bonds) | FXD1/2012/020 | FXD1/2019/020 | FXD1/2021/025 |
| Years to maturity | 6.6 years | 13 years | 20.1 years |
| Coupon Interest rate (before tax) per year | 12.00% | 12.8730% | 13.9240% |
| Coupon Interest rate (after tax) per year | 10.80% | 11.5857% | 12.5316% |
| Months of coupon payment | May, November | April, October | May, November |
2nd April 2026 FXD Treasury Bonds Issue →
| 2nd April 2026 issue (Reopened bonds) | SDB1/2011/030 | FXD1/2026/030 |
| Years to maturity | 14.9 years | 30 years |
| Coupon Interest rate (before tax) per year | 12.00% | 12.50% |
| Coupon Interest rate (after tax) per year | 10.80% | 11.25% |
| Months of coupon payment | February, August | April, October |
1st April 2026 FXD Treasury Bonds Issue →
| 1st April 2026 issue (Reopened bonds) | FXD1/2020/015 | FXD1/2018/025 |
| Years to maturity | 8.9 years | 17.3 years |
| Coupon Interest rate (before tax) per year | 12.756% | 13.400% |
| Coupon Interest rate (after tax) per year | 11.4804% | 12.06% |
| Months of coupon payment | February, August | June, December |
March 2026 FXD Treasury Bonds Issue →
| March 2026 issue (Reopened bonds) | FXD1/2019/020 | FXD1/2021/025 |
| Years to maturity | 13.1 years | 20.1 years |
| Coupon Interest rate (before tax) per year | 12.873% | 13.9240% |
| Coupon Interest rate (after tax) per year | 11.5857% | 12.5316% |
| Months of coupon payment | April, October | May, November |
February 2026 FXD Treasury Bonds Issue →
| February 2026 issue (Reopened bonds) | FXD3/2019/015 | FXD1/2018/025 |
| Years to maturity | 8.4 years | 17.3 years |
| Coupon Interest rate (before tax) per year | 12.34% | 13.40% |
| Coupon Interest rate (after tax) per year | 11.106% | 12.06% |
| Months of coupon payment | January, July | June, December |
January 2026 FXD Treasury Bonds Issue →
| January 2026 issue (Reopened bonds) | FXD1/2019/020 | FXD1/2022/025 |
| Years to maturity | 13.2 years | 21.8 years |
| Coupon Interest rate (before tax) per year | 12.873% | 14.188% |
| Coupon Interest rate (after tax) per year | 11.5857% | 12.7692% |
| Months of coupon payment | April, October | April, October |
December 2025 FXD Treasury Bonds Issue →
| December 2025 issue (Reopened bonds) | SDB1/2011/030 | FXD1/2021/025 |
| Years to maturity | 15.2 years | 20.4 years |
| Coupon Interest rate (before tax) per year | 12.0% | 13.924% |
| Coupon Interest rate (after tax) per year | 10.80% | 12.5316% |
| Months of coupon payment | February, August | May, November |
2nd November 2025 FXD Treasury Bonds Issue →
| 2nd 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 →
| 1st November 2025 (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 issue →
| 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 issue →
| September 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 Nairobi-based financial planning practice that helps professionals create investment portfolios that earn passive income and grow their wealth.
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)
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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