The Central Bank of Kenya (CBK), the government’s fiscal agent, collected KSh 179.8 billion at its second Government Bonds auction this month, against the KSh 50 billion it was seeking, with investors displaying huge appetite for the 15-year and 19-year infrastructure bonds.
The 15-year infrastructure bond has a handsome coupon rate of 12.5% while investors will get a coupon rate of 12.96 on the 19-year infrastructure bond upon maturity. These two treasury bonds were sold between 19th August and 21st August 2025. Successful bidders have a deadline of August 25th 2025 to make payments to the CBK.
The CBK received bids worth KSh 207.5 billion at the August 20th tap sale for the 15-year and 19-year infrastructure bonds auction, against KSh 50 billion offered, an oversubscription of 414.9%.
This is the government’s second Treasury Bonds Auction this month after a similar auction where it re-opened the sale of two 15-year and 19-year infrastructure bonds, seeking KSh 90 Billion. This auction was also oversubscribed with the CBK receiving bids worth KSh 323.4 billion and accepting KSh 95 billion.
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President William Ruto’s administration has a long list of infrastructure projects that it plans to execute during the 2025/26 financial year. They include KSh 30.9 billion for construction of new roads and bridges, KSh 70.8 billion for road rehabilitation, KSh 70.8 billion for road maintenance and KSh 37.1 billion to fund commuter rail upgrades and potential expansion of the SGR network.
In this budget, the government has also allocated KSh 3.6 billion for National grid expansion, KSh 16.3 billion for Rural electrification, KSh 11.5 billion for Geothermal Generation, KSh 1.2 billion for Alternative Energy Technologies and KSh 0.7 billion for Development of Nuclear Energy. Kenya is rolling out an ambitious nuclear energy program, with a strategic roadmap aiming to commission its first nuclear power plant by 2034.
Kenya’s appetite for domestic borrowing is also fuelled by mounting public debt. According to the weekly CBK report, Kenya’s public debt stood at KSh 11.5 trillion as at May 2025, made up of KSh 6.2 trillion in domestic debt and external debt of KSh 5.3 trillion or US$ 41.07 billion.
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