CBK's First New Bond Issuance in 19 Months Draws KSh 31Bn in Bids

The Central Bank of Kenya raised KSh 30.06Billion from its April auction pairing a new 30-year Treasury bond with a reopened savings development bond, exceeding the KSh 20Bn target by 50% as investors piled into the longest-dated paper Kenya has ever issued as a fixed-coupon bond.

• •The new FXD1/2026/030, maturing in March 2056, attracted KSh 31.28Billion in bids and accounted for 78% of the KSh 30.06Bn accepted.
• •However, the market demanded a substantial premium for 30-year duration: the accepted yield of 13.76% came in 126 basis points above the 12.50% coupon, pricing the bond at 91.04 per KSh 100, a deep discount to par.
• •Net borrowing of KSh 767.75Bn now stands at 87% of the revised FY2025/26 domestic target of KSh 885.9Bn, leaving roughly KSh 118Bn of headroom across the May and June auctions.

The pricing outcome signals that the 12.50% coupon was set below the clearing rate for 30-year risk. The gap between the coupon and accepted yield is the widest of any auction this fiscal year, meaning investors buying the new bond at 91.04 will earn a capital gain of roughly 9% at redemption on top of semi-annual coupon payments, assuming they hold to maturity.

The reopened SDB1/2011/030, with 14.9 years remaining, drew more modest interest at KSh 7.05Bn in bids. CBK accepted KSh 6.57Bn at a yield of 13.00%, pricing the bond at 95.79 per KSh 100. Demand was thin at 1.07x coverage but improved on the September 2025 result, when the same bond attracted KSh 8.1Bn against a standalone KSh 20Bn offer.

The result brings the FY2025/26 reopening programme to 15 auctions since July 2025.