CBK receives Ksh460.9B in bids for Ksh150B treasury bonds

The Central Bank of Kenya (CBK) has received an overwhelming response from investors in the reopened Treasury bonds, with a total bid amounting to approximately Ksh460.9 billion, against an offer of Ksh150 billion. The three reopened Treasury bonds, namely IFB1/2019/016, IFB1/2021/018, and IFB1/2021/021, have varying maturities of 9.3 years, 12.7 years, and 16.2 years, respectively.

This strong investor interest, released by CBK on August 12, 2026, represents more than three times the Ksh150 billion target. All three instruments attracted significant demand, with the CBK accepting bids worth about Ksh312 billion, including both competitive and non-competitive bids. The bonds carry coupon rates of 11.75% for IFB1/2019/016, 12.46% for IFB1/2021/018, and 12.73% for IFB1/2021/021.

The weighted average accepted yield for the bonds is approximately 12.19%, 12.49%, and 13.06% for the 9.3-year, 12.7-year, and 16.2-year bonds, respectively. This indicates that investors sought higher returns for committing funds to longer-dated securities. The bonds were priced around par, with accepted prices reflecting the prevailing yields in the market.

The CBK also announced that forthcoming Treasury bonds for September 2026 would be issued ahead of their scheduled dates. The latest auction demonstrates continued investor interest in Kenyan government securities as the Treasury aims to mobilize domestic financing while offering investors relatively predictable returns from fixed-income instruments.