Kenya opened 2026 with a fully subscribed bond auction, raising KSh 60.6 billion in its first reopening of the year as the government continued to lean on the domestic market amid delays in external budget-support funding linked to ongoing IMF talks.
- •The CBK received KSh 71.5 billion in bids for the reopening of the 20-year FXD1/2019/020 and the 25-year FXD1/2022/025, against a KSh 60 billion offer.
- •It accepted KSh 60.58 billion, translating into a performance rate of 119.2%. With no redemptions attached to the auction, the entire amount counted as net new borrowing.
- •The FY2025/26 borrowing plan targets KSh 901.0 billion in net financing, split between KSh 613.5 billion from domestic sources and KSh 287.4 billion from external borrowing.
Demand was concentrated at the long end of the curve. The 25-year FXD attracted KSh 48.18 billion in bids and accounted for KSh 40.34 billion of the accepted amount, clearing at an average accepted yield of 13.7561%. The bond carries a coupon of 14.1880% and has 21.8 years left to maturity. The 20-year FXD drew KSh 23.36 billion in bids and secured KSh 20.24 billion at an average accepted yield of 13.2623%, against a coupon of 12.8730%, with 13.2 years remaining to maturity.
The January outcome reinforces a pattern that dominated the first half of FY2025/26. From July through early December, the Treasury offered KSh 380 billion in bond reopenings, attracted KSh 1.09 trillion in bids, and accepted KSh 585.2 billion.
After accounting for KSh 119.8 billion in redemptions, net domestic borrowing from bonds stood at KSh 465.4 billion by early December. The January auction adds further pressure relief on the cash position at the start of the calendar year.
| Auction Date | Issue Nos. | Amount Offered | Bids Received | Amount Accepted | Redemptions | Net Borrowing |
|---|---|---|---|---|---|---|
| Jul 14, 2025 | FXD1/2018/020 & 025 | 50.00 | 76.90 | 66.70 | 0.00 | 66.70 |
| Aug 18, 2025 | IFB1/2018/015 & 019 | 90.00 | 323.40 | 95.00 | 94.60 | 0.40 |
| Aug 25, 2025 | IFB1/2018/015 & 019 (Tap) | 50.00 | 207.50 | 179.80 | 0.00 | 179.80 |
| Sep 8, 2025 | SDB1/2011/030 | 20.00 | 8.10 | 2.40 | 0.00 | 2.40 |
| Sep 22, 2025 | FXD1/2018/020 & 025 | 40.00 | 97.30 | 61.40 | 0.00 | 61.40 |
| Oct 20, 2025 | FXD1/2018/015 & 020 | 50.00 | 118.90 | 85.30 | 0.00 | 85.30 |
| Nov 10, 2025 | FXD1/2012/020 & FXD1/2022/015 | 40.00 | 92.90 | 52.83 | 0.00 | 52.83 |
| Nov 24, 2025 | FXD3/2019/015 & FXD1/2022/025 | 40.00 | 115.86 | 54.76 | 0.00 | 54.76 |
| Dec 8, 2025 | SDB1/2011/030 & FXD1/2021/025 | 40.00 | 53.13 | 47.11 | 25.20 | 21.91 |
| Jan 12, 2026 | FXD1/2019/020 & FXD1/2022/025 | 60.00 | 71.54 | 60.58 | 0.00 | 60.58 |
| TOTAL | — | 440.00 | 1,165.56 | 645.81 | 119.84 | 525.88 |
However, with IMF programme discussions unresolved, no IMF disbursements have been received in the fiscal year to date. Other flexible external budget-support flows tied to IMF signalling have also yet to materialise, leaving domestic issuance to shoulder the funding burden.
