Kenya’s bond auction drew bids worth KSh99.5 billion for KSh50 billion of reopened Treasury bonds, with the government accepting KSh70.9 billion to meet its borrowing needs. The Central Bank of Kenya published the results on November 4, 2026. The 15-year and 30-year bonds were priced at weighted average accepted rates of 12.74 percent and 14.13 percent respectively.
The Central Bank of Kenya has published the results of an auction that reopened two government bonds: a 15-year Treasury bond maturing on July 10, 2034, and a 30-year bond maturing on March 13, 2056. Reopening adds new bonds to existing issues, which lets the government raise funds without creating a new benchmark. The results table is signed by David Luusa, Director, Financial Markets.
Investors showed strong appetite for the paper. Total bids at cost reached KSh99.47 billion against an offer of KSh50 billion, a performance rate of 198.93 percent. The bid-to-cover ratio, which compares bids with the amount accepted, was 1.40 overall, at 1.24 for the 15-year bond and 1.52 for the 30-year bond.
The government accepted KSh70.86 billion, well above the KSh50 billion it had offered. The 15-year bond raised KSh29.90 billion and the 30-year bond raised KSh40.95 billion. The longer bond accounted for about 58 percent of the total.
Of the accepted amount, KSh32.18 billion came from competitive bids, in which investors state the yield they will accept. The remaining KSh38.68 billion came from non-competitive bids, which accept the average yield set at the auction.
Rates were higher on the longer bond. The weighted average accepted rate was 12.74 percent for the 15-year bond and 14.13 percent for the 30-year bond. The market weighted average rates were 12.87 percent and 14.17 percent respectively, and the coupons on the bonds are 12.34 percent and 12.50 percent.
The auction helped the government meet its repayment obligations. Redemptions totalled KSh40.46 billion, leaving net new borrowing of KSh30.40 billion. In other words, the government raised KSh30.40 billion more than it repaid in the period.
Higher rates on long-term debt increase the cost of borrowing over time. Each shilling borrowed at around 14 percent costs more to service than one borrowed at about 12 percent, which adds to the budget pressure. That matters because Kenya’s budget has already been strained by revenue shortfalls.
The table also lists forthcoming bonds for November 2026, with their tenor, amount and coupon rate to be set out in a prospectus before the issue date. The next auction results and that prospectus will show whether the government continues to rely heavily on long-term debt, and whether rates move up or down.
