The Central Bank of Kenya accepted KSh 18.40Bn in its latest Treasury bond switch auction, extending the maturity profile of domestic debt as authorities move to ease refinancing pressure ahead of upcoming bond redemptions.
- •The switch auction attracted KSh 22.21Bn in bids against an offer size of KSh 15Bn, translating to a 148.06% performance rate.
- •The Central Bank allocated KSh 18.40Bn to investors who exchanged holdings in the FXD1/2021/005 bond, which matures on 9 November 2026, into the longer-dated FXD3/2019/015 bond due on 10 July 2034.
- •The destination bond carries a 12.3400% coupon and has 8.3 years remaining to maturity. The weighted average accepted yield cleared at 11.5887%, below the coupon rate, resulting in a price of 105.8783 per KSh 100.
Competitive investors dominated allocations, accounting for KSh 17.72Bn, while KSh 0.68Bn was allotted through non-competitive bids.
| Metric | FXD3/2019/015 (Switch Destination) |
|---|---|
| Amount Offered | KSh 15.00Bn |
| Bids Received | KSh 22.21Bn |
| Amount Accepted | KSh 18.40Bn |
| Performance Rate | 148.06% |
| Bid-to-Cover | 1.21× |
| Avg Accepted Yield | 11.5887% |
| Coupon | 12.3400% |
| Price per KSh100 | 105.8783 |
The operation allowed investors to roll out of a bond approaching maturity into a longer-tenor security, helping the government reduce the concentration of redemptions in 2026 while extending the duration of its domestic debt portfolio.
Switch auctions remain relatively rare in Kenya’s domestic debt market. The March transaction marks the fourth Treasury bond switch on record and the second conducted in 2026, according to Central Bank listings. The tool was first introduced in June 2020, when authorities switched investors from short-term Treasury bills into longer-term bonds to lengthen the maturity structure of government debt.
