The Central Bank of Kenya (CBK) has recorded robust investor demand in its recent Treasury bond auction, receiving bids totalling approximately Ksh460.9 billion against an offer of Ksh150 billion.
The auction involved the reopening of three Treasury bonds:
- IFB1/2019/016 – 9.3 years maturity with an 11.75% coupon rate
- IFB1/2021/018 – 12.7 years maturity with a 12.46% coupon rate
- IFB1/2021/021 – 16.2 years maturity with a 12.73% coupon rate
Despite the high volume of bids, CBK accepted about Ksh312 billion worth of both competitive and non-competitive bids. The weighted average yields accepted were 12.19% for the shortest maturity bond, 12.49% for the mid-term bond, and 13.06% for the longest maturity bond, reflecting investor preference for higher returns on longer-term securities.
The bonds were priced close to par value, aligning with the prevailing market yields. This auction forms part of the government's ongoing strategy to mobilise funds domestically through fixed-income instruments.
Looking ahead, CBK announced that details for upcoming Treasury bond issues scheduled for September 2026 will be released in advance, including tenor, amount, coupon rates, and issue terms.
The strong subscription underscores continued investor confidence in Kenyan government securities as a stable investment avenue offering predictable returns.
