The Central Bank of Kenya (CBK) has secured Sh63.28 billion from the reopened sale of two long-term Treasury bonds after investors submitted bids worth more than double the amount on offer, giving the government a fresh boost in its domestic borrowing programme.
Auction results released by CBK on July 22, 2026, show the government had offered Sh40 billion through the reopened 20-year and 25-year Treasury bonds but received bids worth Sh85.93 billion. The sale recorded an overall performance rate of 214.82 per cent, pointing to strong demand for the long-term government securities.
CBK said the money raised will go towards the government's domestic borrowing programme and will also be used to finance debt redemptions.
The reopened securities were the 20-year Treasury bond, FXD1/2019/020, which has 12.8 years remaining before maturing on March 21, 2039, and the 25-year Treasury bond, FXD1/2022/025, which has 21.4 years left to maturity and is due on September 23, 2047.
The 20-year bond attracted bids worth Sh23.97 billion against an implied allocation of Sh20 billion. CBK accepted Sh12.25 billion, made up of Sh8.8 billion in competitive bids and Sh3.44 billion in non-competitive bids. The bond recorded a bid-to-cover ratio of 1.96.
The weighted average accepted yield for the bond stood at 13.9234 per cent, compared with a market weighted average rate of 14.4432 per cent. Investors will buy the bond at a price of 97.7321 for every Sh100 at the average yield, while the coupon rate remains at 12.8730 per cent.
The 25-year Treasury bond received even stronger interest, attracting bids worth Sh61.96 billion. CBK accepted Sh51.03 billion, including Sh40.38 billion in competitive bids and Sh10.65 billion in non-competitive bids, giving the bond a bid-to-cover ratio of 1.21.
Its weighted average accepted yield settled at 14.0725 per cent compared with a market weighted average rate of 14.4971 per cent. The bond will be issued at a price of 102.0829 for every Sh100 at the average yield, while the coupon rate stands at 14.1880 per cent.
The regulator said all the money raised from the auction will be used for debt redemptions.
According to the notice, "the specific features of the Bond(s), that is the Tenor, Amounts, Coupon rates and issue terms will be provided in the prospectus before the issue date."
CBK also announced that details of the next Treasury bond sale will be released ahead of the August issuance.
The strong response to the reopened bonds shows investors continue to favour long-term government securities despite their extended repayment periods. The successful auction also gives the government additional funding to meet its debt obligations while supporting activity in the domestic bond market ahead of the next Treasury bond issue.