Kenya, through its fiscal agent the Central Bank of Kenya (CBK), has announced a voluntary buyback of the three-year Treasury bond FXD1/2023/003, targeting KSh 30 billion.
- •The offer provides investors an opportunity to sell part or all of their holdings before the bond’s scheduled maturity on November 5 2026.
- •The FXD1/2023/003 carries a 14.2280% coupon and has an outstanding size of KSh 76.54 billion.
- •Participation in the programme is restricted to investors holding unencumbered positions as of November 17 2025.
The auction will be conducted through a multi-price format, allowing successful bidders to receive the prices they submit.
- •Bids must be lodged via the DhowCSD platform by 10:00 a.m. EAT on November 17 2025, with settlement scheduled for November 19 2025.
- •Non-competitive bids range from a minimum of KSh 50,000 to a maximum of KSh 50 million, while competitive bids start from KSh 2 million per CSD account per tenor.
Indicative clean prices provided in the CBK prospectus suggest yields between 8 and 11 percent. For instance, a yield of 11% corresponds to a price of 101.4472, while an 8% yield is equivalent to 102.8424. The pricing reflects the high coupon and short remaining tenor of the bond.
The CBK’s buyback follows a similar operation in February 2025, when it repurchased bonds worth KSh 50 billion, including FXD1/2022/003 and IFB1/2016/009. That programme was Kenya’s first domestic bond buyback, aimed at reducing refinancing risk and managing upcoming maturities.
Kenya faces a heavy domestic redemption schedule in the coming year, and targeted buybacks are expected to help spread repayments and strengthen investor confidence.
Results of the November 2025 buyback will be published on the DhowCSD platform under the “Transactions” section on the auction date. Investors seeking further details have been directed to the CBK Contact Centre at 0800 720 222 or 0790 922 259, or via [email protected].
