Central Bank of Kenya(CBK) accepted bids worth KSh60.9 billion at the March 16th 2026 auction after it reopened of a 20-year and 25-year Treasury bonds, slightly exceeding the KSh 60Bn target it was seeking for
The 2 reopened 20-year bond matures in 2039 and the 25-year paper is due in 2046, both originally issued as long-tenor fixed-rate securities.
According to Central Bank of Kenya auction results, investors submitted total bids worth KSh 117.4Bn an oversubscription of 195.72%.
While investors showed preference for the 25-year Bond, with bids worth 13.92%, CBK only accepted bids worth KSh16.1 Bn, rejecting the more expensive bids.
Central Bank received bids worth KSh 50.5 Bn for the reopened 20-year Bond, accepting KSh 44.85Bn, a performance rate of 84.16%.
The 20-year paper, which matures on 21st March 2039 had a coupon rate of 12.8730% and had a bid-to-cover ratio of 1.13x against the 25-year bond which offered a more attractive return
Since July 2025, the Central Bank has conducted 12 reopening auctions, offering KSh 600Bn and accepting KSh 807.34Bn against bids totalling KSh 1.50Trillion. Some KSh 119.8 billion has gone into redemptions with KSh 687.5Bn as new borrowings.
National Treasury aims to raise some KSh635Billion in domestic borrowing to support the 2025/26 budget. The strong demand for long term treasury bonds is seen as a signal of huge investor confidence in the Kenyan economy.
With the yield on government paper on a decline, the CBK maintains a ferocious appetite for cheap funds, to repay maturing debt as well as finance the 2025/26 budget.
ALSO READ: CBK Seeks KSh40B in December for Budget Spending
Leave a comment