CBK Seeks Additional KSh 20 Billion for Budgetary Spending in April

Central Bank of Kenya(CBK) is inviting investors to bid for a new 30-year fixed coupon Treasury Bond together with a re-opened 30-year debt instrument, whose purpose is to raise KSh 20 billion to support the 2025/26 budget spending. This is as the fiscal year hits the homestretch with only two months left in the budget cycle.

According to the CBK prospectus, the period of sale of these two debt instruments runs from 7^th April 2026 to 15^th April 2026, with deadline for submission of bids and the Auction taking place on 15^th April 2026

The freshly minted 30-year fixed-coupon Treasury bond, the first fresh issuance since September 2024, has an attractive coupon rate of 12.5% and matures on13th March 2056.

It is paired with a 30-year Development Bond will take 14.9 years to mature on 21^st January 2041 and has a coupon rate of 12%. This Bond was originally sold in 2011.

Data from CBK shows that since the beginning of the current Government fiscal year, Net borrowing through bond re-openings stands at KSh 737.69Bn collected from 14 auctions conducted since July 2025, roughly 83% of the 2025/26 domestic target of KSh 885.9Bn in the 2025/26 budget , leaving approximately KSh 148Bn deficit to be bridged by the May and June auctions coming up, before the current fiscal year ends.

This offer is the third bond auction this April and follows a KSh 40Bn reopening settled on 6 April that raised KSh 50.19Bn, and runs alongside a KSh 20Bn switch auction closing on 13 April. Total April issuance targets up to KSh 80Bn so far in April.

Treasury has relied exclusively on re-openings and switch auctions as domestic borrowing tools while maintaining control over coupon rates as yields declined from their 2024 peaks.

Analysts say CBK’s switch to fresh issuance at 12.50%, after ten consecutive benchmark rate cuts to 8.75%, signals confidence that the rate cycle has turned the corner with a new long-dated benchmark now on the horizon.

The longest-dated paper previously offered this fiscal year was the 25-year old reopened Treasury Bond which matures in April 2046.

The new 30 year treasury bond that frontier out by a decade, institutional investors in the debt market with immense opportunities.