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The Central Bank of Kenya (CBK) indicated that Sh40.46 billion would go towards redemptions, while Sh30.40 billion was reflected under new borrowing and net repayment in the application of funds
The latest offer comes as the government continues to use domestic borrowing as one of its sources of financing its budgetary requirements, with Treasury securities providing a key avenue for mobilising funds from local investors.
In the results released on October 5, CBK said competitive bids accounted for Sh7.04 billion of the amount accepted, while another Sh1.92 billion was taken through non-competitive bids.
The auction, which opened on September 24, 2026, targets investors holding unencumbered positions in Treasury bonds FXD1/2024/003 and FXD2/2013/015. Bids will be accepted until 10 am on October 5, 2026, when the auction will be conducted
According to the CBK prospectus, the funds raised through the reopening will be used for budgetary support, making the auction part of the government's domestic borrowing programme
The bonds will be offered through a multi-price auction, with investors able to submit either competitive or non-competitive bids
The strong performance by equities comes against a backdrop of relatively stable monetary conditions in Kenya
The 30-year bond, meanwhile, attracted bids worth Sh11.09 billion against an offer of Sh6 billion. This represented a performance rate of 18.49 per cent, with the CBK accepting Sh6.61 billion
The CBK said successful investors would receive details of the amount payable through the DhowCSD Investor Portal or application under the transactions section on September 4
The auction was conducted as a switch operation, allowing holders of specified government securities to exchange eligible source securities for the destination bond
The results also show that the government had room to select bids based on the rates offered by investors, with accepted bids reflecting the prevailing conditions in the domestic debt market
The reopened issues comprised the 20-year Treasury bond, FXD1/2019/020, which has 12.8 years remaining to maturity and is due on March 21, 2039, and the 25-year Treasury bond, FXD1/2022/025, which has 21.4 years remaining to maturity and will mature on September 23, 2047
The bonds were offered with coupon rates of 13.2000% for FXD1/2018/020 and 13.9240% for FXD1/2021/025. The allocated average rates for accepted bids were reported at 13.9885% and 14.8636%, respectively
The offer includes 15- and 25-year instruments with competitive coupon rates and secondary market listing on the Nairobi Securities Exchange
The FXD3/2019/015 bond is a 15-year paper with 8.3 years remaining to maturity. It carries a coupon rate of 12.3400% and will mature on July 10, 2034.
In a press statement issued on March 31, 2026, the Treasury said the payments were made in accordance with the Government’s debt servicing schedule, despite appearing outstanding under the Exchequer reporting framework.
CBK has outlined the bidding terms for interested investors. Non-competitive bids can be submitted from a minimum of Sh50,000 up to Sh50 million. Competitive bids, on the other hand, require a minimum of Sh2 million per Central Depository and Settlement account for each tenor.
The bonds qualify for statutory liquidity ratio requirements and will be listed on the Nairobi Securities Exchange, with bids closing on February 11, 2026.
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 Central Bank has set October 15, 2025, at 10 am as the deadline for bid submissions. The auction will take place the same day, with the settlement date set for October 21, 2025.
In a statement issued on Tuesday, August 26, 2025, the CBK said the reopened bonds are FXD1/2018/020, FXD1/2022/025, and SDB1/2011/030.