The National Treasury has redeemed the 12-year tax-free infrastructure bond IFB1/2013/12, settling KSh 15.2 billion on its 15 September 2025 maturity date.
- •The paper carried an 11% coupon and was originally structured as a multi-tranche amortised bond.
- •It was issued in September 2013 with two redemption points: 8-year tranche worth KSh 12.39 billion, which matured in September 2021; and a 12-year tranche worth KSh 15.21 billion, which has matured in September 2025.
- •This structure allowed the government to spread its repayment burden and maintain liquidity, while using a single ISIN (KE3000008130) and issue number.
This marks the third major bond redemption in the last 6 months, following:
- •FXD1/2020/005 (5-year) – KSh 99.6 billion in May 2025 at 11.67%.
- •FXD1/2023/002 (2-year) – KSh 94.6 billion in August 2025 at 16.97%.
Together, these redemptions have eased part of the government’s domestic debt stock, although at a heavy interest cost due to the high-yield papers issued in recent years.
Remaining 2025 Redemptions
| Maturity Date | Issue No | ISIN | Principal (KSh Bn) | Coupon (%) |
|---|---|---|---|---|
| 01 Dec 2025 | IFB1/2022/006 | KE8000005325 | 5.34 | 13.215 |
| 01 Dec 2025 | IFB1/2022/006 (Switch) | KE8000005325 | 24.37 | 13.215 |
| 08 Dec 2025 | FXD2/2010/015 | KE2000001558 | 11.69 | 9.00 |
| 08 Dec 2025 | FXD2/2010/015 (R1) | KE2000001558 | 6.18 | 9.00 |
| 08 Dec 2025 | FXD2/2010/015 | KE2000001558 | 7.33 | 9.00 |
These remaining maturities total about KSh 54.9 billion and carry lower coupons than the August 2025 paper, offering slight relief to the Treasury’s cash flows in the year’s final quarter.
