The Central Bank of Kenya (CBK) has released the results for the reopened 20-year and 25-year Treasury Bonds (Issue Nos. FXD1/2019/020 and FXD1/2021/025). The auction, dated March 16, 2026, reveals a significant divergence in investor interest between the two tenors, with the longer-dated 25-year bond seeing a massive oversubscription.
The CBK sought to raise a total of Ksh. 60 billion through this dual-tranche issue. The market responded with total bids amounting to Ksh. 117 billion, representing an overall performance rate of 195.72%.
Ultimately, the government accepted Ksh. 60.992.65 billion, effectively meeting its borrowing target for this round.
Detailed comparison of bond issues
| Feature | FXD1/2019/020 (Reopened) | FXD1/2021/025 (Reopened) |
| Tenor | 20 Years (13.1 years to maturity) | 25 Years (20.1 years to maturity) |
| Due Date | March 21, 2039 | April 9, 2046 |
| Bids Received (Kshs. M) | 50.498 billion | 66.935 billion |
| Amount Accepted (Kshs. M) | 44.851 billion | 16.141 billion |
| Performance Rate | 84.16% | 111.56% |
| Weighted Average Rate | 12.7475% | 12.9489% |
| Coupon Rate | 12.8730% | 13.9240% |
Key takeaways
- Investor Preference: The 25-year bond (FXD1/2021/025) was the clear favourite, attracting over Ksh. 66 billion in bids. However, the CBK was selective, accepting only about 24% of the bids offered for this specific tenor.
- Yield Trends: The weighted average rate for accepted bids remained competitive, staying slightly below 13% for both issues (12.74% for the 20-year and 12.94% for the 25-year).
- Non-Competitive Bids: There was healthy participation from retail and smaller institutional investors, with non-competitive bids totaling over Kshs. 23 Billion across both bonds.
The Central Bank has signaled continued activity in the domestic debt market. Director of Financial Markets, David Luusa, noted that the specific features for forthcoming Treasury Bond issues for April 2026, including tenors, amounts, and coupon rates, will be provided in a prospectus closer to the issue date.