Central Bank of Kenya(CBK) has gone to the primary bond market again this month, seeking KSh 50 billion for budgetary support through sale of two long-term reopened Treasury Bonds.
CBK prospectus shows that the re-opened 15-Yr and 20-Yr Treasury Bonds have a coupon rate of 12.65% and 13.44% respectively. The first time this month that CBK is back to the bond market, the sale period for both papers will run until this Wednesday 15th October 2025.
The 15 Yr. Treasury Bond, which was first sold in 2018 matures on 9th May 2033 while the 20Yr which was first opened in 2012, is due for redemption on 22nd July 2041.
All successful bidders are advised to obtain the payment key and amount payable from the CBK DhowCSD Investor Portal/App under the transactions tab on Friday, October 17, 2025.
Secondary trading in multiples of KSh 50,000 for these two bonds commence on Tuesday, October 21, 2025.
The CBK will rediscount the bonds as a last resort, at 3% above the prevailing market yield or coupon rate whichever is higher, upon receiving written instructions from investors via the email [email protected].
CBK figures indicate that T-Bonds turnover in the secondary bond market turnover declined by 27.4% to KSh 30.6billion in the week ended 9th October from KSh 42.3bn posted the previous week.
As of this week, the Government’s outstanding maturities for the next 12 months are at KSh 989.66billion in T-Bills and KSh 232.0billion in T-Bonds.
When coupons are factored in, the total maturity profile is KSh 1.9trillion.
CBK schedule shows that the next bond maturity is in December 2025, affording the National Treasury adequate headroom on its repayment timetable.
Details of CBK last Auction in Sept
At the last auction in September where CBK sought for KSh 40 billion, investors showed huge interests, turning in KSh 97.3 billion, an oversubscription of 243% with the state fiscal agent accepting bids worth KSh 61.4 billion.
The CBK had floated a 20Yr and 25Yr Treasury Bond with attractive coupon rates of 13.2% and 14.2% respectively, to meets the Government’s borrowing requirements.
The 25-Yr paper was the most attractive pulling in KSh 69.3 billion in bids while KSh 37.9 billion was accepted as the fiscal agent rejected other bids for this tenor.
Treasury Bonds comprise the largest part of the Government’s Domestic Debt stock at 81.31 % as at 3rd October 2025, followed by Treasury Bills (excluding REPOS) at 16.24% while IMF loan outstanding is 1.19%.
Banks are the biggest players in the Government debt market, holding 35.3% of all debt instruments, followed by pension funds at 14.4% and insurance firms with 13%. This is compared to individual households with 6.6% of all treasury bills and bonds.
As at the end of this fiscal year, Kenya’s public debt stood at KSh 11.8 Trillion, made up of KSh 6.3 Trillion in domestic debt and KSh 5.4 Trillion in foreign debt.
