The Central Bank of Kenya (CBK) has raised KSh70.86 billion from its first Treasury bond auction in November, exceeding its KSh50 billion target after receiving bids worth KSh99.47 billion. The newly issued 30-year Treasury bond attracted the highest demand as investors showed strong interest in the long-term security.
The 30-year bond received bids worth KSh62.40 billion, out of which CBK accepted KSh40.95 billion at a yield of 14.1266%. This represented an oversubscription rate of 124.80%, according to the auction results.
Demand for the 15-year bond was comparatively lower, attracting bids worth KSh37.1 billion. The Central Bank accepted KSh29.90 billion at a yield of 12.7404%, representing a performance rate of 74.145%.
Both bond yields were higher than Kenya’s reported inflation rate of 7.3%. Of the total funds raised, CBK allocated KSh40.46 billion towards debt redemptions, while KSh30.40 billion was directed towards net domestic borrowing.
Meanwhile, the Central Bank is targeting an additional KSh10 billion through a voluntary switch auction. The arrangement allows eligible investors holding a five-year Treasury bond issued in 2023 and selected Treasury bills to exchange their securities for a 10-year bond issued in 2019.
The eligible securities include 91-day, 182-day and 364-day Treasury bills. The 2023 five-year bond carries a coupon rate of 16.8440% and matures on July 10, 2028, while the eligible Treasury bills mature on November 23, 2026.
The switch auction closes on November 9, 2026, with allocations scheduled to be published on the DhowCSD Investor Portal on the same day. Settlement is expected to take place on November 11, 2026.
CBK has stated that investors can exchange part or all of their eligible holdings through a multi-price auction.
However, applicants must hold unencumbered securities, while investors with outstanding pledges are required to cancel them five days before settlement.
The Central Bank also reserved the right to accept, reduce or reject applications without providing reasons.