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The bank also noted that international oil prices have softened due to increased production and weaker global demand, though volatility persists amid ongoing uncertainties.
According to the CBK data presented by Governor Kamau Thugge, the national debt stood at Sh8.7 trillion during the 2021/22 financial year, coinciding with President Ruto’s first year in office.
The announcement on Thursday says the offer period runs from Wednesday, November 27, 2025, to Wednesday, December 3, 2025, with the auction scheduled for December 3 and settlement on December 8.
The initial tranche is set at Sh15 billion, with a Sh5 billion greenshoe option to meet additional investor demand, the firm announced Tuesday.
All new local currency variable-rate loans will follow the new framework, with rates determined by the Common Reference Rate plus a customer-specific risk premium. Existing loans will transition by February 28, 2026.
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.
Operating expenses dropped 13 percent as the bank’s lower loan provisions cushioned the impact of falling interest earnings. The decrease in provisions came even as the total stock of non-performing loans rose 3.8 percent to Sh44.3 billion, amid a tough economic environment where borrowers, both individuals and companies, face repayment challenges.
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 Banking (Penalties) Regulations, 2025, are now under review by the Parliamentary Committee on Delegated Legislation, as lawmakers prepare to scrutinise their potential impact on the financial sector.
CBK data shows that the gap between loan and deposit rates has widened sharply, reaching a nine-year high of over seven percentage points. This means banks are charging borrowers far more for credit while offering savers very little in return, despite a significant drop in the benchmark rate to 9.25 per cent.
The stability was attributed to balanced shifts in food and fuel costs, with sugar, tomatoes, and cabbages showing sharp increases, while wheat flour, milk, and cooking oil recorded marginal price drops.