The Central Bank of Kenya (CBK), released the results of a reopened auction for two long-dated treasury bonds on 11 February 2026, which revealed significant oversubscription, underscoring sustained investor appetite for government paper.
The auction featured the re-opening of Issue Nos. FXD3/2019/015 and FXD1/2018/025, which were originally issued in 2019 and 2018 respectively. Together, the two infrastructure bonds offered a total amount of KES 50.00 billion, but the response from the market exceeded expectations, with total bids received reaching a combined KES 213.74 billion, translating to an aggregate performance rate of 427.47 percent.
FXD3/2019/015 Performance
A further break down on the figures shows that the FXD3/2019/015 infrastructure bond, which is a fifteen-year tenor issue with 8.4 years remaining to maturity, attracted bids that amounted to KES 133.79 billion, representing a performance rate of 267.59 percent. Ultimately, KES 54.79 billion was accepted, comprising of KES 33.70 billion in competitive bids and KES 21.09 billion in non-competitive bids.
The bid-to-cover ratio for this instrument stood at a robust 2.44, reflecting strong demand. Additionally, the weighted average rate of the accepted bids was recorded at 12.1835 percent, which is marginally lower than the market weighted average rate of 12.3876 percent. This bond, which carries a coupon rate of 12.3400 percent, was priced at KES 101.7358 per KES 100 at average yield.
FXD1/2018/025 Performance
The second instrument, FXD1/2018/025, which was originally a twenty-five-year infrastructure bond, currently has a residual 17.3 years to maturity. This particular bond instrument received a total of KES 79.94 billion in bids, representing a performance rate of 159.89 percent.
A total of KES 45.75 billion was accepted, of which KES 36.01 billion was from competitive bids and KES 9.74 billion from non-competitive bids. The bid-to-cover ratio was 1.75, indicating a firm demand. The weighted average rate of accepted bids was 13.3621 percent, which is slightly below the market weighted average of 13.4496 percent. With a coupon rate of 13.4000 percent, the bond was priced at KES 102.5238 per KES 100 at average yield.
Accepted Bond Bids Push New Borrowing Beyond KES 100Bn
In aggregate, the auction accepted a total of KES 100.54 billion across both infrastructure bonds, of which KES 69.71 billion was from competitive bids and KES 30.83 billion non-competitive bids. The government classified the entirety of the proceeds as new borrowing.
The combined bid-to-cover ratio of 2.13 further reinforces the narrative of resilient demand within Kenya’s domestic debt market, even as the National Treasury continues to navigate a challenging macroeconomic environment characterised by elevated interest rates and persistent fiscal pressures.
Looking ahead, the CBK has also signaled the forthcoming issuance of Treasury bonds in March 2025, noting that specific features such as tenor, coupon rates, and amounts would be communicated in the official prospectus closer to the issue date.
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