Kenya’s domestic debt program remains ahead of schedule as the Treasury reopens two long-term bonds, FXD1/2012/020 and FXD1/2022/015, to raise KSh 40 billion.
- •The proceeds will support the government’s FY2025/26 budget financing plan, which targets KSh 634.8 billion in gross domestic borrowing.
- •The sale marks the seventh reopening in the 2025/26 fiscal year, reflecting a deliberate front-loading strategy that has already pushed net domestic borrowing past KSh 430 billion, narrowing the fiscal deficit early in the year.
- •The reopened bonds carry coupons of 12.000% and 13.942%, with remaining tenors of seven and 11.4 years respectively.
Investor participation in earlier reopenings has been strong.
- •The October auction raised KSh 85.3 billion against a KSh 50 billion offer, with yields easing to 12.65% and 13.53% on the 15- and 20-year papers.
- •Combined with August’s tap sale, which brought in KSh 179.8 billion, the Treasury has now raised nearly 85% of its full-year bond target within the first five months of the fiscal year.
By October, the domestic debt stock had risen to roughly KSh 6.76 trillion, up more than KSh 350 billion since June. Treasury bills added another KSh 43.4 billion to short-term funding, reinforcing the early-year borrowing pattern.
Yields are expected to stay broadly steady following the Central Bank’s 25-basis-point policy rate cut in October, with investors continuing to favor longer-dated bonds.
The Central Bank of Kenya will conduct the auction between October 23 and November 5, with settlement set for November 10.
