Central Bank of Kenya Seeks KSh 50 Bn in February Bond Sale

Central Bank of Kenya(CBK), the state fiscal agent is seeking to raise KSh 50 billion through the sale of a 15-year Treasury Bond and a 25-year Treasury Bond.

According to the Central Bank of Kenya prospectus, the two debt instruments have an attractive coupon rate of 12.34% and 13.40% respectively, with the sale period for both debt instruments to run from January 22^nd 2026 to February 11^th 2026.

“Given recent auction trends, we anticipate increased investor demand for the 25-year treasury bond, first sold in 2018, due to its comparatively higher coupon rate offered to investors by the Central Bank of Kenya despite a longer tenor, said a weekly bulletin from Standard Investment Bank(SIB).

Available data from Central Bank of Kenya shows that the 15-year bond matures on 10^th July 2034 while the 25-year paper has a maturity date of 25^th May 2043.

In last week’s Treasury Bills auction, demand for these debt instruments slowed with the CBK accepting KSh 18.21 Billion out of KSh 24 billion offered, while rejecting the more expensive bids. The three-month treasury bill was the most attractive receiving bids worth KSh 8.83 Billion out of KSh 10 Billion offered while the 91-day treasury bill was the least attractive, receiving bids worth KSh 1.37 Billion out of KSh 4 Billion offered, with the CBK accepting the entire amount.

Central Bank of Kenya is creating enough leg room to manage domestic debt

As at the beginning of this week, the Government’s outstanding maturities to January 2027 are at KSh 1,014.6 Billion in treasury bills and KSh 320.58 Billion in Treasury Bonds. When the coupons are factored, the total maturity profile comes in at KSh 2 Trillion. The next bond maturity is expected in May 2026, amounting to KSh 66.9 Billion, giving the CBK enough legroom on its debt repayment schedule.

Meanwhile, at the Nairobi Securities Exchange(NSE), market activity increased to US$ 22.8 million, with Stanbic dominating and accounting for 17.8% of the week’s turnover while its share price dropped 1% to KSh 198.00

Absa New Gold ETF was last week’s top price gainer, up 81.4% to 5915.00 while BOC Kenya was the worst performer, down 9% to KSh 120.75.

Investors at the NSE are glued to their screens this week as East African Breweries Limited releases its half-year 2026 financial results. This happens following announcement by UK Diageo of its divestiture from East Africa’s largest alcohol brewer.

All eyes will also be on official monthly inflation figures for January 2026, to be released by the Kenya National Bureau of Statistics(KNBS).

ALSO READ: Central Bank of Kenya Accepts KSh25.2 Bn in Bond Switch Auction