Central Bank of Kenya(CBK) has floated re-opened 15 and 25-year papers, seeking KSh 40 Billion, by inviting investors to the primary bond market, a few days to the 2026/27 Budget reading in parliament. The purpose of the funds is for budgetary support.
According to the Central Bank of Kenya prospectus, the 15-year treasury bond has 8.7 years to maturity and a coupon rate of 12.76% while the re-opened 25-year paper has a tenor to maturity of 17.1 years and a higher coupon rate of 13.40%.
The period of sale of the two papers is between 29th May to 3rd June 2026. The minimum bidding amount is KSh 50,000 and as maximum of KSh 50 million. Competitive bid amount is KSh 2 million per CSD account per tenor.
Central Bank of Kenya prospectus shows that the auction date is 8th June 2026, with the state fiscal agent settling the settlement date of 8th June 2026.
Investors can pledge Government Securities as collateral to access loans from regulated financial institutions. A pledge not cancelled at least five days before the securities mature will result in securities automatically settling to the lender’s account.
The Central Bank will rediscount bonds as a last resort, at 3% above the prevailing market yield or coupon rate whichever is higher. Rediscount instructions should be sent from the CBK DhowCSD investor portal/App under the Instructions tab, select Create new and the Rediscount option.
Central Bank of Kenya Treasury Bills Auction Results
Meanwhile, at last Thursday’s Treasury Bills Auction, there was an undersubscription of 69.32% with KSh 16.3 billion in bids received out of KSh 24 billion worth of bids offered. The fiscal agent accepted KSh 16.62Bn.
The 91-day Treasury Bill remained most attractive debt instrument, registering a performance rate of 352.34%. The auction was significantly oversubscribed, receiving KSh 14Bn in bids compared to the KSh 4.0Bn on offer.
The 182-day Treasury Bill received bids worth KSh 1.049 billion out of KSh 10billion offered, an undersubscription of 10.49%. The 364-day Treasury Bills received bids worth KSh 1. 49 billion out of KSh 10 billion, an undersubscription of 14.95%.
Investors will get a return of 8.3884% for the 91-day treasury bills, 8.2500% for the 182-day treasury and 364-day treasury bill will have return of 8.6266%.
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