Kenya’s Treasury bond market saw strong demand in its latest auction, with the 15-year and 25-year reopened bonds drawing bids far exceeding the amounts offered. The Central Bank of Kenya (CBK) reported that bids for Issue Numbers FXD3/2019/015 and FXD1/2022/025, scheduled for November 24, 2025, totaled more than Sh115.8 billion.
The 15-year bond, now with 8.7 years remaining until maturity, is listed under ISIN KE6000001328 and will mature on July 10, 2034. The 25-year bond, carrying ISIN KE8000005093, has 21.9 years to maturity and will expire on September 23, 2047.
According to CBK, the total bids received at cost amounted to Sh33,714.18 million for the 15-year bond and Sh82,144.11 million for the 25-year bond. This brought the combined total to Sh115,858.29 million, reflecting what the bank described as an exceptionally strong appetite for long-term government debt.
Investor demand, measured by performance rate, stood at 84.29% for the 15-year instrument and an impressive 205.36% for the 25-year bond. Overall, the performance rate for both bonds reached 289.65%.
In terms of allocations, CBK accepted Sh20,188.58 million from bids for the 15-year bond and Sh34,572.16 million from the 25-year instrument. The total accepted amount across both bonds was Sh54,760.74 million, of which Sh38,126.20 million came from competitive bids and Sh16,634.54 million from non-competitive applications.
The auction also recorded a bid-to-cover ratio of 1.67 for the 15-year bond and 2.38 for the 25-year bond, resulting in an overall ratio of 2.12, signaling that bids exceeded the amount the government aimed to raise. CBK listed the “Price per Sh100 at average yield” at 103.0202 for the 15-year bond and 104.3685 for the 25-year bond.
Meanwhile, the market weighted average rate was 12.7456% for the 15-year instrument and 13.8482% for the 25-year bond. Accepted bids had slightly lower rates, coming in at 12.5736% and 13.7460%, respectively. Coupon rates remain unchanged at 12.3400% and 14.1880% for the 15-year and 25-year bonds.
CBK clarified that the entire Sh54,760.74 million accepted in this auction is intended for redemptions, with no portion allocated to new borrowing or net repayment, as detailed under the “Purpose/Application of funds” section.
Looking ahead, the central bank announced upcoming bond issuances in December 2025. “The specific features of the Bond(s), that is the Tenor, Amounts, Coupon rates and issue terms will be provided in the prospectus before the issue date,” the statement said. The communication was signed by David Luusa, Director of Financial Markets, on November 19, 2025.
The high subscription rates underscore continued investor confidence in Kenya’s long-term government securities, highlighting robust participation ahead of the next domestic borrowing cycle. With the December prospectus expected soon, CBK appears set to maintain momentum in its borrowing programme, supported by strong market engagement.
