Competitive vs Non-Competitive Bids

Submitting Your Bid:With CBK's Treasury Money Direct, bids can now be submitted conveniently through mobile phones, replacing the need for physical bids.

Two Ways to Invest:

• Competitive Bidding: For investments over Ksh.20 million, investors indicate the rate they're willing to accept.
• Non-Competitive Bidding: Investors accept the average rate of accepted bids.

Auction Process:

• On auction day, the Auction Management Committee (AMC) reviews all bids and sets a cut-off rate.
• For competitive bids, those within the cut-off rate are accepted, while those above are rejected.Non-competitive bidders receive the average rate of accepted bids.

Notification and Payment:

• Successful bidders receive notification from CBK via SMS or email by the next day.
• Payment details, including the amount, reference number, and payment deadline (typically by the next Monday), are provided.Payments below Ksh.1 million can be made via cheque, while bank transfers are required for amounts above 1 million.

Interest Payments:

• Treasury bond interest (coupon) is paid semi-annually, with dates specified in the prospectus.Interest is credited directly to the investor's bank account on these dates.

Receiving Your Investment:

• Upon maturity, investors receive the final interest payment along with the face value of the bond.Proceeds are credited to the bank account linked to the CDS account used for investment.Investors may opt to reinvest by providing roll-over instructions to CBK for future bond purchases.