CBK (Central Bank of Kenya) will on Wednesday next week auction KSh 40 billion of two re-opened 15-year and 25-year Treasury Bonds, to raise cash for budgeted spending.
These two re-opened bonds have Coupon Rates of 12.3400% for the 15-year T-Bond and 14.1880 for the 25-year T-Bond, according to the CBK prospectus. These are the returns that CBK will be paying periodically to the bonds holders.
The CBK conducted this month’s first Treasury Bonds Auction on Wednesday 5th, seeking KSh 40 billion for Budgetary support. The state fiscal agent accepted bids worth KSh 52.8 billion and rejected KSh 43.4 billion made up of more expensive bids at this auction, implying that CBK now enjoys the luxury to be selective.
This is the second time in November, in the space of a week, that CBK has come back again to the debt market for another KSh 40 billion to finance the 2025/26 budget. The period of sale for the two re-opened Treasury Bonds, is between Tuesday November 11th,2025 and Wednesday, November 19th 2025. The Auction is on November 19th 2025.
Why the CBK T-Bonds Auction Remains Attractive
According to investment insiders, the Eurobond buybacks earlier this year has eased Treasury’s short-term refinancing pressure, allowing the CBK to temporarily kicking the can down the road.
Surpluses from those buybacks have helped shore up the Central Bank of Kenya’s foreign exchange reserves, now at 5 months above the statutory 4 months import cover. With fresh external inflows, Treasury can afford to reject expensive domestic debt, creating room for yields to soften.
The August 2025 Infrastructure Bond issue raised close to KSh 270 billion, nearly four months’ worth of domestic borrowing needs — another reason the rates might stabilize or drift lower. Together, these factors suggest interest rates could remain lower for longer.
Understanding the CBK Treasury Bonds Auction Results
This week’s Treasury Bonds Auction results by Central Bank of Kenya shows that the reopening of two Treasury Bonds — the 15-year and 20-year issues, received total bids of KSh 96.2 billion with CBK accepting bids worth KSh 52.8 billion and rejecting the rest.
For instance, the Weighted Average Rate (what the CBK agreed to pay on the re-opened 20-year Treasury Bond was 12.4707%. This is against Market Weighted Average (what bidders were willing to lend at) of 12.6383%.
The difference represents the more expensive bids rejected — investors demanding higher returns than the government was willing to pay.
Total bids received for this instrument was KSh 35.3 billion with CBK accepting bids worth KSh 19.5 billion and rejecting KSh 15.8 billion
Market Weighted Average Rate is the average interest rate investors were willing to lend at, based on all the bids received. It’s like the overall market price for borrowing.
Weighted Average Rate of Accepted Bids, on the other hand, (12.4707%) is the rate the CBK is willing to pay on bond.
In the latest CBK T-Bond Auction results, dated November 5th, what CBK was willing to pay was slightly lower than the market rate, meaning the government rejected bids for the 20-year debt instrument that were more expensive, worth KSh 43.4 billion.
Likewise, while investors were asking for 13.4665% for the 15-year re-opened Treasury Bond, the CBK was only willing to borrow at13.3386%, thus rejected bids worth KSh 24.2 billion for this debt instrument at this auction.
Click below for CBK Treasury Bond Auction Results Dated 5th November 2025 https://www.centralbank.go.ke//uploads/historical_treasury_bond_results/266436728_RESULTS%20FXD1-2012-020%20AND%20FXD1-2022-015%20DATED%2010-11-2025.pdf.
How Investors should position in the Treasury Bonds Market
Investors are advised to watch and follow happenings in the secondary bonds market. The latest primary issues cleared at 11.2%–12% (after tax). Therefore, a bond that has a 12.5% return in the secondary market is a better deal.
Since the coupon rate (13.9420 %) for the re0pened 15-year Treasury Bond was higher than the Accepted Average Yield (13.3386%), it means interest rates have dropped since this particular Treasury Bond was first issued in 2022.
At the last auction, the 15-year reopened Treasury Bond which first sold in 2022 was the most attractive. CBK was willing to willing to borrow at 13.4% on this debt instrument while investors were asking for 13.5%. The state fiscal agent received bids worth KSh 57.6 billion on the 15-year bond and accepted KSh 33.4 billion, rejecting bids worth KSh 24.2 billion.
So, what is in it for the investor? If one bought into this 15-year reopened bond, they will get the fixed 13.942% coupon rate, which is higher than the current market yield. Essentially, they will receive regular interest payments based on the Bond’s face value and the 13.942% Coupon Rate.
ALSO READ:CBK Raises KSh 52.8 Bn for Budget Support in November
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