The Central Bank of Kenya is set to issue a new 30-year fixed-coupon Treasury bond, the first fresh issuance since September 2024, paired with a reopened 30-year savings development bond in a combined KSh 20Bn offer for April.
- •The FXD1/2026/030 carries a 12.50% coupon and matures on 13 March 2056, extending the domestic yield curve by a decade.
- •It is offered alongside the SDB1/2011/030, a savings development bond originally issued in 2011 with 14.9 years remaining.
- •Net borrowing through bond reopenings stands at KSh 737.69Bn across 14 auctions since July 2025, roughly 83% of the revised FY2025/26 domestic target of KSh 885.9Bn, leaving approximately KSh 148Bn of headroom with May and June auctions ahead.
| Metric | SDB1/2011/030 | FXD1/2026/030 |
|---|---|---|
| Type | Reopening | New Issue |
| Tenor | 30-Year (14.9 yrs remaining) | 30-Year (30 yrs to maturity) |
| Coupon | 12.000% | 12.500% |
| Maturity | 21 Jan 2041 | 13 Mar 2056 |
| Accrued Interest | KSh 2.31 per KSh 100 | KSh 0 per KSh 100 |
The offer is the third bond auction this month. It follows a KSh 40Bn reopening settled on 6 April that raised KSh 50.19Bn, and runs alongside a KSh 20Bn switch auction closing on 13 April. Total April issuance targets up to KSh 80Bn across the three operations.
Since September 2024, Treasury has relied exclusively on reopenings and switch auctions to fund domestic borrowing, maintaining control over coupon rates as yields declined from their 2024 peaks. The return to fresh issuance at 12.50%, with CBK having cut the policy rate ten consecutive times to 8.75%, signals confidence that the rate cycle has turned decisively enough to set a new long-dated benchmark.
The new bond prices at exactly par with zero accrued interest at a 12.50% yield, offering the cleanest possible entry point for investors. The longest-dated paper previously offered this fiscal year was the FXD1/2021/025 maturing in April 2046.
The FXD1/2026/030 pushes that frontier out by a decade, providing pension funds and insurance companies with duration to match long-dated liabilities in a market where such instruments have been scarce.
