CBK Announces 8th Treasury Bond Reopening in FY2025/26

The Central Bank of Kenya (CBK) is seeking to raise KSh 40 billion in a dual-tranche bond auction, tapping longer-dated securities to fund its budget and capitalize on robust demand from institutional investors.

• •The sale, which closes for bids on November 19, is a re-opening of two existing bonds: a 15-year issue with 8.7 years remaining, and a 25-year issue with 21.9 years to maturity.
• •The auction continues a pattern of aggressive domestic borrowing by the Kenyan government in the first half of the 2025/26 fiscal year.
• •Treasury has already raised approximately KSh 543 billion through bond sales, far exceeding the typical pace.

This "front-loading" strategy allows the government to cover its financing needs before potential market volatility later in the year and ahead of heavy bond redemption periods. By issuing long-term debt now, the state also reduces its future "rollover risk"—the danger of being forced to refinance debt at much higher interest rates.

The Offer Details

The bonds on offer are:

• •

  FXD3/2019/015: Carrying a coupon of 12.340%, this bond matures in October 2034.

• •

  FXD1/2022/025: With a higher coupon of 14.188%, this bond will be redeemed in September 2047.

Successful bidders will be settled on November 24. The CBK has set a competitive bid minimum of KSh 2 million per investor, with a separate window for smaller, non-competitive bids up to KSh 50 million.

A Front-Loaded Borrowing Strategy

The previous bond auction on November 10 was heavily oversubscribed, raising KSh 52.83 billion.

*Net Borrowing = Amount Accepted minus Redemptions where applicable.