The Central Bank of Kenya (CBK) has announced the reopening of two fixed-coupon Treasury bonds in October, seeking Ksh 50 billion to support government spending.
The reopened bonds are FXD1/2018/015, offering a 12.650% coupon and maturing in May 2033, and FXD1/2021/020, paying 13.444% and due in July 2041.
The move extends CBK’s aggressive strategy of front-loading borrowings in the 2025/26 financial year, with the National Treasury racing to plug a fiscal deficit projected at Ksh 923.2 billion.
By the end of September, CBK had already raised more than Ksh 400 billion from the domestic market, covering over 40% of the net domestic borrowing target of Ksh 613.6 billion.
The fundraising has leaned heavily on reopening long-dated issues between 15 and 25 years, even as the ultra-long 30-year bond has struggled to attract strong investor demand.
In July, CBK raised Ksh 66.7 billion from reopenings of the 20-year and 25-year bonds, against an initial Ksh 50 billion offer. In August, record appetite for infrastructure bonds saw bids climb to Ksh 323.4 billion, with CBK accepting nearly Ksh 275 billion through reopenings and a tap sale. September, however, saw mixed performance, with the 30-year paper only receiving 40% subscription.
The Treasury faces significant repayment pressure, with domestic debt service for FY25/26 projected at Ksh 1.3 trillion out of a total Ksh 1.9 trillion debt service bill.
Analysts say the heavy reliance on domestic borrowing comes with rollover risks but note that appetite for infrastructure and conventional long bonds remains robust, with yields hovering near 14%.
The government is banking on sustained investor participation to balance redemptions and keep borrowing costs in check as the fiscal year progresses.
 has announced the reopening of two fixed-coupon Treasury bonds in October, seeking Ksh 50 billion to support government spending.){kind=link}