The Central Bank of Kenya has announced the results of the three-year buyback treasury bond issue No. FXD1/2023/003 dated 19/11/2025. The voluntary auction, which was just 6 months from its maturity, ended with high demand from investors. This buyback aimed to manage the government’s near-term debt maturities more effectively, preventing a potential liquidity crunch in the next financial year.
CBK received bids worth KES 34.3 billion , indicating a high performance of 114.32% against the KES 30 billion that had been offered. We could see that the government was quite selective and only accepted KES 20.1 billion, which is just 58.5 percent of the bids received. The bond has a coupon rate of 14.23, which was issued on a market-determined auction. In 2023, the market was clearly on a high interest rate environment, compared to the accepted a weighted average yield of 7.80 . This rate is substantially lower than the bond’s original coupon, revealing the government’s success in refinancing its expensive debt at a much lower cost. The final price was set at Ksh 103.29 per Ksh 100 face value, allowing investors to sell their holdings at a premium.
This strategic move comes as Kenya’s debt servicing obligations are projected to exceed Ksh 1 trillion in interest payments alone during the 2025/2026 fiscal year. With total public debt estimated at Ksh 12.05 trillion, the successful buyback reflects the government’s ongoing efforts to manage debt sustainability and reduce refinancing risks ahead of large maturities in 2026.
This bond repurchase has allowed investors to profit from capital gain, and at the same time, the government has been able to retire this expensive bond at a lower and much effective cost. The bid results were announced on November 17, 2025 . And successful investors will receive payments on Wednesday, November 19,2025. The Treasury Bond issues for December 2025 are planned. The details on tenor, amount, and coupon rates will be disclosed in the prospectus released ahead of the auction date.
