The National Treasury, through the Central Bank of Kenya (CBK), has accepted KSh 20.08 billion in bids for a buyback of the FXD1/2023/003 treasury bond, successfully retiring a portion of the government's domestic debt ahead of its maturity in May 2026.
- •The auction, held on November 19, 2025, attracted significant investor interest, with total bids submitted amounting to KSh 34.30 billion against an offered amount of KSh 30.00 billion.
- •Of the total accepted amount, KSh 17.66 billion came from competitive bids and KSh 2.41 billion from non-competitive bids.
- •This operation marks the Treasury's second domestic bond buyback of 2025, following a similar exercise in February.
Investors agreed to sell back their holdings at a weighted average accepted yield of 7.8019%, a sharp discount to the bond's original coupon of 14.2280%. The accepted bids were priced at KSh 103.2877 per KSh 100 of face value.
By proactively buying back shorter-dated, higher-coupon bonds like the FXD1/2023/003, which has an outstanding stock of KSh 76.54 billion, the Treasury aims to smooth its redemption profile and reduce future interest costs.
The strong demand for the buyback window provides investors with a liquid exit path for short-dated bonds and offers a fresh pricing benchmark for the secondary market.
