The Central Bank of Kenya raised KSh 47.11 billion in the December reopening of the 30‑year Savings Development Bond (SDB) and 25‑year Fixed Coupon Bond (FXD) after receiving KSh 53.13 billion in bids against a KSh 40 billion offer.
- •The auction delivered KSh 21.91 billion in new net borrowing as investors again favored the long‑dated FXD, leaving the SDB with only a small share of demand.
- •The 25‑year FXD1/2021/025 dominated participation, attracting KSh 48.54 billion in bids and securing KSh 43.21 billion at an average accepted yield of 13.6199%.
- •The bond continues to anchor long‑duration demand from pension funds and insurers, which are positioning ahead of heavy maturities expected in early 2026.
The 30‑year SDB1/2011/030 again struggled for traction. It drew KSh 4.59 billion in bids and secured KSh 3.90 billion at 13.3247 percent. This is the second weak outcome for the SDB in two months, reflecting its limited secondary‑market liquidity and the market’s stronger preference for FXDs and IFBs that offer clearer pricing and deeper trading.
The December result extends a front‑loaded borrowing cycle that has shaped FY25/26. Previous reopenings in November raised KSh 52.83 billion and KSh 54.76 billion respectively, both supported by strong long‑end appetite. By early December, cumulative accepted bids had passed KSh 585 billion, reinforcing the Treasury’s emphasis on securing funding early in the fiscal year.
Attention now shifts to how the issuance path evolves in the second half of the fiscal year. Long‑tenor demand remains stable, but liquidity conditions and the redemption calendar will guide the pace and structure of upcoming auctions as the government manages refinancing pressure heading into 2026.
FY25/26 Treasury Bond Auction Summary (KSh Billion):
| Auction Date | Issue Nos. | Amount Offered | Bids Received | Amount Accepted | Redemptions | Net Borrowing |
|---|---|---|---|---|---|---|
| 14 Jul 2025 | FXD1/2018/020 & 025 | 50.0 | 76.9 | 66.7 | 0.0 | 66.7 |
| 18 Aug 2025 | IFB1/2018/015 & 019 | 90.0 | 323.4 | 95.0 | 94.6 | 0.4 |
| 25 Aug 2025 | IFB1/2018/015 & 019 (Tap) | 50.0 | 207.5 | 179.8 | 0.0 | 179.8 |
| 8 Sep 2025 | SDB1/2011/030 | 20.0 | 8.1 | 2.4 | 0.0 | 2.4 |
| 22 Sep 2025 | FXD1/2018/020 & 025 | 40.0 | 97.3 | 61.4 | 0.0 | 61.4 |
| 20 Oct 2025 | FXD1/2018/015 & 020 | 50.0 | 118.9 | 85.3 | 0.0 | 85.3 |
| 10 Nov 2025 | FXD1/2012/020 & FXD1/2022/015 | 40.0 | 92.9 | 52.83 | 0.0 | 52.83 |
| 24 Nov 2025 | FXD3/2019/015 & FXD1/2022/025 | 40.0 | 115.86 | 54.76 | 0.0 | 54.76 |
| 8 Dec 2025 | SDB1/2011/030 & FXD1/2021/025 | 40.0 | 53.13 | 47.11 | 25.20 | 21.91 |
| TOTAL | — | 380.0 | 1,094.02 | 585.23 | 119.84 | 465.39 |
