The Central Bank of Kenya (CBK) has accepted Sh22.51 billion in a Treasury bond switch auction for the ten-year FXD4/2019/010 bond, exceeding the Sh15 billion amount offered after investors submitted bids worth Sh22.58 billion.
The auction results, released on August 24, 2026, show that the CBK received total bids valued at Sh22.58 billion at cost, representing a performance rate of 150.55 percent against the amount offered.
The destination bond, FXD4/2019/010, has 3.23 years remaining to maturity and is scheduled to mature on November 12, 2029. It carries a coupon rate of 12.28 percent.
According to the auction results, “Total Amount Offered (Kshs. M) 15,000.00” while “Total bids Received at cost (Kshs. M) 22,582.52”. The Central Bank accepted Sh22,510.93 million, with Sh22,417.92 million coming from competitive bids and Sh93 million from non-competitive bids.
The auction was conducted as a switch operation, allowing holders of specified government securities to exchange eligible source securities for the destination bond.
The source securities identified by the CBK included T-Bill 2685/091, T-Bill 2646/182, T-Bill 2574/364, and bond issue FXD1/2021/015-ISIN.
The destination security is listed as T-Bond issue FXD4/2019/010-ISIN KE6000005659.
The market weighted average rate was recorded at 11.2395 percent, while the weighted average rate of accepted bids stood slightly lower at 11.2391 percent.
The CBK also placed the price at 106.0845 shillings per Sh100 at the average yield. The bid-to-cover ratio was recorded at 1.00.
The central bank's summary showed the key auction figures, stating: “Performance Rate (%) 150.55; Amount Accepted (Kshs. M) 22,510.93; Of which Competitive bids 22,417.92; Non-competitive bids 93.00; Bid-to-Cover Ratio 1.00; Market Weighted Average Rate (%) 11.2395; Weighted Average Rate of Accepted Bids (%) 11.2391; Price per Kshs 100 at average yield 106.0845; Coupon Rate (%) 12.2800.”
The amount accepted was significantly higher than the original Sh15 billion target, reflecting the volume of securities presented for the switch.
The Sh22.58 billion in bids was also about Sh7.58 billion above the amount initially offered.
The switch forms part of the government's debt-management operations, providing investors with an avenue to exchange eligible securities for the specified destination bond.
Such transactions also enable the government to manage the composition and maturity profile of its domestic debt.
The latest auction comes ahead of the CBK's planned Treasury bond issues for September 2026.
CBK said details of the forthcoming securities will be provided in the relevant prospectus before the issue date.
The September issues will specify the tenor, amounts, coupon rates and other terms applicable to the bonds.
The CBK results did not identify individual investors or disclose the specific quantities of source securities surrendered by each participant. Instead, the notice provided aggregate figures covering the bids received, amounts accepted, pricing and the securities eligible for the switch.
The latest results offer an indication of investor participation in Kenya's government securities market as the country moves towards the September 2026 Treasury bond issuance programme.