The Central Bank of Kenya has accepted Sh20.07 billion from its latest three-year buyback Treasury bond auction after bids surpassed the Sh30 billion offer.
New auction data released on Monday shows a 114.32 percent performance rate, with competitive bids dominating.
The bond, FXD1/2023/003, attracted a market-weighted average rate of 7.7806 percent ahead of its 2026 maturity.
According to the official auction statement dated November 17, 2025, the bond carries an International Securities Identification Number (ISIN) of KE8000005762 and is due to mature on May 11, 2026.
The CBK had offered Sh30 billion for the buyback programme, but the bids received surpassed this amount by over Sh4 billion, underscoring what the Bank indicated as renewed confidence in government securities.
The Bank accepted Sh20.07 billion of the bids received, most of which came from competitive submissions.
The data shows that competitive bids amounted to Sh17.66 billion, while non-competitive bids came to Sh2.41 billion.
All successful bids will be paid out under the terms outlined in the notice.
Investors priced the bond at an average rate of return that underscored cautious optimism in the fixed-income market.
The market-weighted average rate was recorded at 7.7806 percent, while the weighted average rate of accepted bids stood slightly higher at 7.80197 percent.
The price per Sh100 at the average yield was Sh103.2871.
The coupon rate attached to the bond remains 14.2280 percent, consistent with the original terms of issuance for FXD1/2023/003.
According to the CBK, the performance reflects sustained activity in the domestic debt market amid ongoing government efforts to manage short- to medium-term maturities.
The CBK also confirmed that Sh20.07 billion will be paid out as part of the accepted bids settlement. All payments will be processed in line with the auction timetable.
In a further communication, the Central Bank announced that it will be issuing additional Treasury bonds in December 2025.
While the specific features of the upcoming December issues, including tenor, amount, coupon rates, and issue terms, were not disclosed, the CBK stated that complete details will be provided in a forthcoming prospectus.
The statement, signed by David Luusa, Director of Financial Markets at the CBK, noted that the Bank is maintaining its bond issuance calendar as part of its broader strategy to manage public debt, strengthen liquidity, and support government financing needs.
The auction outcome suggests sustained investor interest in government securities as markets respond to shifting economic conditions.
Financial analysts have in recent months pointed to a stabilising yield curve and renewed appetite for medium-term papers.
The CBK’s results reflect that momentum, registering oversubscription even as the government continues to navigate fiscal pressures.
The buyback programme is part of Kenya’s debt management framework, designed to smoothen maturity profiles and reduce refinancing risk.
By accepting Sh 20.07 billion, the CBK has effectively retired part of the outstanding liability ahead of the bond’s May 2026 maturity date.
The forthcoming December bond issuance is expected to attract similar interest, with investors keenly awaiting the announcement of coupon rates and tenors.
The CBK has emphasised that all details will be provided in the prospectus before the issue date, maintaining its commitment to transparency in the domestic debt market.
As the year draws to a close, the CBK’s stewardship of government securities will remain under focus, especially as investors and markets assess the direction of fiscal policy going into 2026.
