The Central Bank of Kenya (CBK) has invited investors holding specific government bonds to participate in a voluntary buyback worth Ksh 30 billion issued in 2023.
The move announced on Monday, November 10, allows investors to sell part or all of their holdings in the Treasury bond FXD1/2023/003 back to the government before its maturity.
“Central Bank of Kenya, acting in its capacity as fiscal agent for the Republic of Kenya, invites bids for the above bond whose terms and conditions are as follows,” read the notice in part.
CBK Announces Ksh 30 Billion Bond Buyback Auction Ahead of Maturity
The bond, which carries a coupon rate of 14.228 percent and is set to mature on November 5, 2026, has a total outstanding debt of KSh 76.5 billion, according to the CBK prospectus for the November Treasury Bond Buyback Programme.
Eligible investors must fully own their holdings in the bond, meaning the bonds are not pledged or used as collateral, as of November 17, 2025.
Participation in the auction is voluntary, and investors may opt to sell back part or the entire holding (face value) of the bond(s).
“At primary auction, only investors with unencumbered holdings in T-Bond issue FXD1/2023/003 as of November 17, 2025,” CBK added.
The auction will run from October 23 to November 17, 2025.
Also Read: CBK Invites Kenyans to Invest in Ksh40 Billion Treasury Bonds with as Low as 50K
Investors are required to submit their bids electronically through the CBK DhowCSD system by 10:00 am on Monday, November 17, 2025.
How to Bid
All successful bidders should obtain details of their successful bids from the DhowCSD Investor Portal/App under the ‘Transactions’ tab on the same day.
“The Central Bank reserves the right to accept applications in full or part thereof or reject them in total without giving any reason,” CBK noted.
The buyback will follow a multi-price bid auction method, with successful investors scheduled to receive payments on Wednesday, November 19, 2025.
Investors with pledged bonds must cancel their contracts at least five business days prior to the buyback date to be eligible to participate.
CBK has also provided an online pricing calculator and a detailed guide on its website to assist investors in calculating indicative returns, available at https://www.centralbank.go.ke/bills-bonds/treasury-bonds/.
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Why CBK Conducts Buyback Auction
The most recent CBK Treasury Bond buyback auction took place in February 2025, when the government repurchased KSh 50 billion worth of bonds maturing that year.
The buyback covered three treasury bonds—a three-year, a five-year, and a nine-year infrastructure bond—with a combined outstanding debt of KSh 185.05 billion.
The bonds carried coupon rates ranging from 11.667% to 12.5%. Successful bidders received their payments on February 19, 2025.
Kenya is facing a large wave of domestic bond maturities in the near term, putting pressure on the government to raise substantial funds quickly.
According to analysts, conducting a bond buyback ahead of maturity helps reduce the need for refinancing, easing the strain of repaying or rolling over large sums simultaneously.
Without a buyback, the government might have to borrow at higher interest rates or under less favourable market conditions.
Additionally, elevated yields on long-term bonds make refinancing more costly, making early buybacks a strategic move to manage debt more efficiently.
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