The Central Bank of Kenya (CBK) has received bids worth KSh99.47 billion from investors seeking to purchase two reopened Treasury bonds.
In results released on Wednesday, November 4, 2026, the CBK said it accepted KSh70.86 billion in bids for the 15-year and 30-year Treasury bonds.
The auction attracted bids equivalent to 268.3 per cent of the amount initially offered, indicating strong demand for the government securities.
The two bonds, identified as FXD3/2019/015 and FXD1/2026/030, have maturity dates of July 10, 2034, and March 13, 2056, respectively.
The 15-year bond, which has 7.8 years remaining to maturity, attracted bids worth KSh45.92 billion against an offer of KSh37.07 billion. The CBK accepted KSh29.90 billion, representing a performance rate of 124.80 per cent.
The 30-year bond, with 29.5 years remaining to maturity, received bids worth KSh53.55 billion. The CBK accepted KSh40.95 billion, translating to a performance rate of 198.93 per cent.
Also Read: How AI Could Revolutionise the Way CBK Monitors Kenya’s Economy
CBK Reveals Interest Rates Investors Demanded
The auction results also showed the interest rates investors sought in exchange for lending money to the government.
The market-weighted average rate for the 15-year bond stood at 12.8717 per cent, while the 30-year bond recorded a higher rate of 14.1711 per cent.
However, the weighted average rates of accepted bids were slightly lower, at 12.7404 per cent for the 15-year bond and 14.1266 per cent for the 30-year bond.
The two bonds carried coupon rates of 12.34 per cent and 12.50 per cent, respectively.
The CBK also disclosed that the government accepted both competitive and non-competitive bids.
For the 15-year bond, competitive bids accounted for KSh7.17 billion, while non-competitive bids stood at KSh22.73 billion.
For the 30-year bond, competitive bids amounted to KSh25.01 billion, compared to KSh15.95 billion in non-competitive bids.
How Government Will Use the Money
The CBK indicated that KSh40.46 billion from the proceeds would go towards redemptions, while KSh30.40 billion would be applied to new borrowing/net repayment.
The auction had a combined bid-to-cover ratio of 1.40, meaning investors submitted bids worth 1.4 times the amount the government accepted.
The 15-year bond recorded a bid-to-cover ratio of 1.24, while the 30-year bond posted 1.52.
Also Read: CBK Reveals How Kenyan Shilling Is Performing Against Dollar as Global Oil Prices Rise
CBK Announces Upcoming Treasury Bond Issues
The Central Bank further announced that it would issue additional Treasury bonds during November 2026.
However, the specific details, including the tenors, amounts, coupon rates and issue terms, will be communicated through the relevant prospectus before the issue date.
The results were signed by David Luusa, the CBK Director of Financial Markets, on November 4, 2026.
How Investors Submit Treasury Bond Bids in Kenya
Investors seeking to lend money to the government submit bids to the Central Bank of Kenya (CBK), indicating how much they want to invest and, for competitive bids, the interest rate they are willing to accept.
The process is conducted through the CBK’s DhowCSD platform, which is available through a mobile application and web portal.
Investors can also participate through commercial and investment banks.
There are two main ways of submitting bids: competitive and non-competitive.
Competitive bids allow investors to specify the amount they want to invest and the yield they expect to earn. The minimum investment is KSh2 million per CSD account for each bond tenor.
Non-competitive bids allow investors to specify the amount they wish to invest without setting their own interest rate.
Instead, they accept the weighted average rate determined through the auction. These bids range from KSh50,000 to KSh50 million.
Follow our WhatsApp Channel and X Account for real-time news updates and subscribe to our YouTube Channel for in-depth interviews.
