The Central Bank of Kenya (CBK), as the Government of Kenya’s fiscal agent, has announced new reopenings of long-dated treasury bonds in September 2025, seeking KSh 60 billion as the government steps up domestic borrowing to plug the budget deficit.
- •This comes weeks after CBK raised nearly KSh 270 billion in August through infrastructure bond reopenings and a tap sale that attracted record bids.
- •Together, these issues have already covered more than 40% of the KSh 635.5 billion domestic borrowing target for FY 2025/26.
- •Subscription levels in September will show whether investor appetite sustains after the record August uptake.
| Detail | FXD1/2018/020 | FXD1/2022/025 | SDB1/2011/030 |
|---|---|---|---|
| Tenor (Remaining) | 20-year (12.5 yrs) | 25-year (22.2 yrs) | 30-year (15.5 yrs) |
| Coupon (%) | 13.2000 | 14.1880 | 12.0000 |
| Maturity | Mar 2038 | Sep 2047 | Jan 2041 |
| Amount on Offer | KSh 20Bn | KSh 20Bn | KSh 40Bn |
| Settlement Date | 08 Sep 2025 | 08 Sep 2025 | 22 Sep 2025 |
Context and Earlier Results
The August reopening of IFB1/2018/015 and IFB1/2022/019 was the first since their initial issues in 2018 and 2022. Investors placed KSh 323.4 billion in bids against a KSh 90 billion offer, with KSh 95.01 billion accepted.
Days later, CBK launched a tap sale targeting KSh 50 billion but ended up absorbing KSh 179.77 billion, effectively mopping up most of the rejected bids. This brought the combined uptake to nearly KSh 275 billion, but also blurred the traditional limit of tap sales.
Budget Financing Drive
Kenya’s FY 2025/26 budget projects a fiscal deficit of 3.9% of GDP, requiring KSh 635.5 billion in net domestic borrowing.
With nearly KSh 270 billion already raised and KSh 60 billion now on offer, CBK is front-loading issuance to capture demand early and manage refinancing risks. The focus on long-dated 20-, 25- and 30-year bonds extends the maturity profile of government debt and diversifies the funding base.
Analysts expect interest to remain firm, but pricing, tax treatment, and competing credit needs will shape participation as CBK continues to drive its borrowing program.
