CBK attracts Ksh22.6B bids in latest Treasury bond switch

The Central Bank of Kenya (CBK) received bids exceeding Ksh22.6 billion for the FXD4/2019/010 Treasury bond during its latest auction, outpacing the Ksh15 billion target by over Ksh7 billion. The results, disclosed on Monday, August 24, 2026, revealed that investors submitted bids amounting to Ksh22.58 billion for the bond, achieving a performance rate of 150.55 percent.

CBK accepted bids totaling Ksh22.51 billion, with Ksh22.42 billion coming from competitive bids and Ksh93 million from non-competitive bids. The auction opened to investors looking to exchange selected Treasury bills and an older Treasury bond for the longer-dated FXD4/2019/010 bond, which carries a coupon rate of 12.28 percent and matures on November 12, 2029.

Eligible investors, including holders of specific Treasury bills and the FXD1/2021/015 Treasury bond, had the option to switch a portion or all of their holdings into the destination bond. The market weighted average rate was 11.2395 percent, while the weighted average rate of accepted bids was 11.2391 percent, resulting in a bid-to-cover ratio of 1.00.

The switch is part of the government's domestic debt management program, paving the way for CBK to issue Treasury bonds in September 2026, with further details to be provided in the upcoming prospectus.