The Central Bank of Kenya (CBK) accepted bids worth Sh8.96 billion in a 15-year Treasury bond switch auction on Monday, October 5, 2026, as the government continues to swap shorter-dated debt for longer-term paper to ease its repayment burden.
The auction drew bids worth Sh9.08 billion against Sh10 billion on offer, a 90.81 percent performance rate and a bid-to-cover ratio of 1.01, meaning it fell short of the target. Of the amount accepted, Sh7.04 billion came through competitive bids and Sh1.92 billion through non-competitive bids.
The accepted bonds carry a 12.65 percent coupon and the market weighted average yield stood at 12.61 percent. The 12.65 percent bond matches the 15-year paper first sold in May 2018, which matures on May 9, 2033.
A switch converts holdings of maturing securities into a longer-term bond. It is voluntary for investors and it helps the Treasury avoid a large cash crunch when debt falls due. It has been a recurring tool this fiscal year, though investor appetite has varied. In April, investors agreed to swap only Sh1.75 billion of a Sh20 billion target into this same 2033 bond, which CBK Governor Kamau Thugge blamed on market uncertainty over the Iran war. The latest swap on September 7 saw investors move Sh11 billion from a 15-year bond into a 10-year security maturing in November 2029.
The result comes as the Treasury leans heavily on the domestic market. Net borrowing in the first two months of the fiscal year stood at Sh406 billion or 41 percent of the full-year target of Sh987.4 billion. The CBK has also opened bidding from October 6 to October 14 for a fresh Sh50 billion in Treasury bonds, with the auction on October 19.
