The Central Bank of Kenya raised KSh 60.99Bn in its March reopening of two long-dated Treasury bonds, slightly exceeding the KSh 60Bn target as investor demand concentrated on the longer 2046 paper.
- •Combined bids reached KSh 117.43Bn, implying overall demand of nearly two times the offer, according to results released by the Central Bank.
- •The reopening covered the FXD1/2019/020 bond maturing in 2039 and the FXD1/2021/025 bond due in 2046, both originally issued as long-tenor fixed-rate securities.
- •Demand was heavily skewed toward the 25-year bond, which recorded a 4.15x bid-to-cover ratio.
| Metric | FXD1/2019/020 | FXD1/2021/025 |
|---|---|---|
| Maturity | 21 Mar 2039 | 09 Apr 2046 |
| Coupon | 12.8730% | 13.9240% |
| Bids Received | KSh 50.50Bn | KSh 66.94Bn |
| Amount Accepted | KSh 44.85Bn | KSh 16.14Bn |
| Bid-to-Cover | 1.13x | 4.15x |
| Avg Accepted Yield | 12.75% | 12.95% |
The 20-year bond, by contrast, attracted more modest demand at 1.13x coverage, though it accounted for the bulk of accepted bids.
The accepted yields came in below the coupon rates, resulting in prices above par. The weighted average accepted yield was 12.75% for the 2039 bond and 12.95% for the 2046 bond.
The reopening forms part of a broader domestic financing programme that has relied heavily on reissued long-dated bonds. Since July 2025, the Central Bank has conducted 12 reopening auctions, offering KSh 600Bn and accepting KSh 807.34Bn against bids totaling KSh 1.50Tn.
| Metric | FY2025/26 Reopenings |
|---|---|
| Amount Offered | KSh 600.00Bn |
| Bids Received | KSh 1,496.73Bn |
| Amount Accepted | KSh 807.34Bn |
| Redemptions | KSh 119.84Bn |
| Net Borrowing | KSh 687.50Bn |
Demand for government paper has remained resilient despite heavy issuance earlier in the fiscal year. By December 2025, cumulative domestic financing had already reached KSh 554.96Bn, equivalent to 87% of the FY2025/26 domestic borrowing plan, reflecting substantial front-loading of funding.
Alongside the reopening, the government also launched a KSh 15Bn bond switch, allowing holders of the FXD1/2021/005 bond maturing in November 2026 to exchange into the FXD3/2019/015 bond due in 2034. The operation marks the fourth bond switch on record and the second conducted in 2026.
