How to Invest in Treasury Bonds in Kenya (2026 Guide)

Overview

Treasury Bonds are one of the safest and most predictable ways to earn passive income in Kenya. Backed by the Central Bank of Kenya, T-Bonds let you lock in a fixed coupon for 2 to 25 years while your principal stays protected by the Government of Kenya. What you need to start Minimum investment: KES 50,000 for most T-Bonds, with multiples of KES 50,000 thereafter. Infrastructure Bonds sometimes start at KES 100,000. A CBK CSD account: open one for free through the new DhowCSD portal . You can register fully online with your ID, KRA PIN and a Kenyan bank account. A commercial bank account: used to pay for the bond and receive your coupon and redemption amounts. Step by step: buying a T-Bond through DhowCSD Register on DhowCSD and complete KYC (ID, KRA PIN, selfie, bank details).

The detail

Watch the CBK calendar for the monthly bond auction prospectus. Decide between competitive (you propose a yield) or non competitive (you accept the weighted average rate) bids. Most retail investors choose non competitive. Submit your bid through DhowCSD before the close date. If allotted, pay through your bank to the CBK settlement account on value date. Receive your coupon every six months and principal at maturity. T-Bonds vs T-Bills T-Bills are short term (91, 182 or 364 days). They pay a single discount up front and the full face value at maturity, which is great for parking cash. T-Bonds run 2 to 25 years and pay a fixed coupon every six months, which is better for long term passive income and matching liabilities like school fees or retirement. Tax and Infrastructure Bonds Ordinary T-Bonds carry a 10 to 15 percent withholding tax on coupons depending on tenor. Infrastructure Bonds are tax free , which often makes their net yield 1 to 3 percentage points higher than comparable ordinary bonds. If CBK lists an IFB during the month, it almost always deserves a serious look.

What it means for you

What yields look like right now Kenyan T-Bond yields have ranged between 13 and 18 percent over the last two years, well above the dividend yield of most NSE stocks. Long dated bonds typically pay more than short ones, but lock your capital for longer. How T-Bonds fit a Kenyan portfolio At Kevlar Bosuben we usually anchor a Balanced or Conservative profile with 30 to 50 percent in T-Bonds and IFBs, with the rest split between NSE equities, SACCO deposits and selective real estate. The fixed coupons smooth out the volatility of equities and provide cash flow you can reinvest or live on. Ready to build a bond ladder? Book a free 10 minute consultation and we will map out a bond ladder using current auctions, your time horizon and tax bracket.

Frequently asked questions

Who wrote this article?

It was written by the Kevlar Bosuben Ventures advisory team in Nairobi, Kenya, based on live client work.

How often is this article updated?

We revisit articles whenever the underlying market data or regulation changes, and the update date is shown above.

Where can I get advice on this topic?

Book a free ten minute discovery call on WhatsApp at +254 708 074 285 or through Calendly.

About Kevlar Bosuben Ventures

Kevlar Bosuben Ventures is a Nairobi based business and financial advisory team. Advisory, coaching and education only. We do not hold client funds or earn product commissions. Contact +254 708 074 285 or kevlarbosubenventures@gmail.com.