The Central Bank of Kenya (CBK) has released the official auction results following the recent prospectus inviting bids for the re-opening of two benchmark fixed coupon Treasury Bonds. The auction, which concluded on May 20, 2026, sought to raise KES 50 billion for budgetary support and it resulted in a total amount accepted of approximately KES 36.59 billion.
The combined performance rate for the two bonds reached 94.32%, with the CBK receiving total bids worth KES 47.16 billion at cost. Of the total bids received, the bank accepted KES 36.59 billion, resulting in an overall bid-to-cover ratio of 1.29.
Investors showed varying levels of interest in the two instruments, with the longer-dated 20-year bond attracting a higher performance rate than the 15-year bond. The market weighted average rates for the bonds were slightly higher than the rates finally accepted by the CBK. For the 15-year bond, the market rate stood at 13.0595%, while the 20-year bond saw a market rate of 13.8155%. The CBK’s decision to accept lower weighted average rates (12.9708% and 13.7421% respectively) indicates a strategic effort to manage the government’s borrowing costs.
CBK Bond Specifications
The 15-year bond (FXD3/2019/015), currently has 8.3 years remaining to maturity, the auction saw a performance rate of 41.28%. Total bids received amounted to KES 20.64 billion, of which the CBK accepted KES 14.43 billion. The weighted average rate of accepted bids was 12.9708%, while the bond’s fixed coupon rate is 12.3400%. Based on the average yield, the price per KES 100 was established at 101.1122.
The 20-year bond (FXD1/2021/020), with 15.3 years remaining to maturity, attracted stronger interest, resulting in a performance rate of 53.04%. Investors submitted bids totaling KES 26.52 billion, and the bank accepted KES 22.17 billion. This bond carries a coupon rate of 13.4440%, with the weighted average rate of accepted bids landing at 13.7421%. The resulting price per KES 100 at this average yield was 101.9415.
The total accepted funds will be utilized for redemptions (KES 10.25 billion) and new borrowing or net repayment (KES 26.34 billion). Successful bidders are expected to settle their accounts by May 25, 2026, the same day secondary trading is scheduled to commence on the Nairobi Securities Exchange. The CBK has also noted that further Treasury bond issues are anticipated for June 2026.
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