Fahamisha Investing Newsletter
Central Bank of Kenya has reopened several fixed-coupon Treasury Bonds in September and October 2026. They were taxable bonds (not tax exempt IFBs-Infrastructure bonds) which offer semi-annual income for investors.
- Minimum investment amount: Ksh. 50,000
- Note: You invest in multiples of sh. 50,000 (e.g. 100k, 150k, but not 75k)
September 2026: Issue 1 (27 Aug – 7 Sept)
FXD3/2019/015
- Maturity date: 10 July 2034 (7.9 years remaining before principal is paid back)
- Coupon interest rate: 12.34% per year before tax, paid in January and July
- After-tax coupon return: 11.106% per year interest received after 10% withholding tax is deducted.
SDB1/2011/030
- Maturity date: 21 January 2041 (14.4 years remaining before principal is paid back)
- Coupon interest rate: 12.00% per year before tax, paid in February and August
- After-tax coupon return: 10.80% per year interest received after 10% withholding tax is deducted.
September 2026: Issue 2 (8 Sep – 21 Sep)
FXD1/2019/020
- Maturity date: 21 March 2039 (12.6 years remaining before principal is paid back)
- Coupon interest rate: 12.8730% per year before tax, paid in April and October
- After-tax coupon return: 11.5857% per year interest received after 10% withholding tax is deducted.
FXD1/2026/030
- Maturity date: 13 March 2056 (29.6 years remaining before principal is paid back)
- Coupon interest rate: 12.50% per year before tax, paid in April and October
- After-tax coupon return: 11.25% per year interest received after 10% withholding tax is deducted.
October 2026: Issue 1 (24 Sep – 5 Oct)
FXD3/2019/015
- Maturity date: 10 July 2034 (7.9 years remaining before principal is paid back)
- Coupon interest rate: 12.34% per year before tax, paid in January and July
- After-tax coupon return: 11.1060% per year interest received after 10% withholding tax is deducted.
FXD1/2019/020
- Maturity date: 21 March 2039 (12.5 years remaining before principal is paid back)
- Coupon interest rate: 12.8730% per year before tax, paid in April and October
- After-tax coupon return: 11.5857% per year interest received after 10% withholding tax is deducted.
October 2026: Issue 2 (6 Oct – 19 Oct)
SDB1/2011/030
- Maturity date: 21 January 2041 (14.4 years remaining before principal is paid back)
- Coupon interest rate: 12.00% per year before tax, paid in February and August
- After-tax coupon return: 10.80% per year interest received after 10% withholding tax is deducted.
FXD1/2026/030
- Maturity date: 13 March 2056 (29.6 years remaining before principal is paid back)
- Coupon interest rate: 12.50% per year before tax, paid in April and October
- After-tax coupon return: 11.25% per year interest received after 10% withholding tax is deducted.
Source: CBK Treasury Bonds Prospectuses Link, Fahamisha Investing Analysis
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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) – 025 implies 25 years to maturity
- 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) – 003 implies 3 years to maturity
- 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
August 2026 FXD Treasury Bonds Issue →
| August 2026 issue (Reopened bonds) | IFB1/2019/016 | IFB1/2021/018 | IFB1/2021/021 |
| Years to maturity | <= sh.1M: 4.2 years sh.1.05M+: 9.3 years | <= sh.1M: 3.6 years sh.1.05M+: 12.7 yrs | <= sh.1M: 5 years sh.1.05M+: 16.2 yrs |
| Coupon Interest rate (before tax) per year | 11.7500% | 12.6670% | 12.7370% |
| Coupon Interest rate (after tax) per year | 11.7500% | 12.6670% | 12.7370% |
| Months of coupon payment | April, October | April, October | March, September |
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:
- Understand investment options so you can 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, a financial planner with 10+ years’ investment 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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