CBK raises Ksh30.1B in 30-year bond auction
By Kenneth Mwenda, April 15, 2026The Central Bank of Kenya (CBK) has announced strong results from its auction of reopened and new 30-year treasury bonds.
In a statement on Wednesday, April 15, 2026, CBK said investors bid Ksh38.3 billion for the Ksh20 billion on offer, and the government accepted Ksh30.1 billion.
The reopened SDB1/2011/030 bond, which has 14.9 years left to maturity and pays a 12 per cent coupon, drew bids of Ksh7.05 billion. The Central Bank accepted Ksh6.57 billion from this issue. Its performance rate reached 35.25 per cent.
The new FXD1/2026/030 bond, with a full 30-year term and a 12.5 per cent coupon, performed far better. Investors placed bids worth Ksh31.28 billion against the portion of the target allocated to it. The Central Bank accepted Ksh23.49 billion. This gave the new bond a performance rate of 156.41 per cent.
Auction dates, settlement terms
The auction opened on April 7 and closed at 10 am on April 15. Settlement takes place on April 20. The reopened bond matures on January 21, 2041 while the new bond matures on March 13, 2056. Both carry 10 per cent withholding tax on interest.
Retail investors could bid a minimum of Ksh50,000 and a maximum of Ksh50 million through non-competitive bids. Banks and institutions bid at least Ksh2 million per account. The Central Bank kept the right to accept bids in full, in part, or reject them without giving reasons.
The government uses the money for budgetary support. Kenya continues to rely on domestic borrowing to cover its fiscal deficit and roll over existing debt. Long-dated bonds like these give the Treasury funding locked in for decades while offering investors steady coupon payments.
Yields on similar long-term Kenyan government bonds have stayed in the 12 to 12.5 per cent range in recent months. The strong demand shows investors still see value in the paper despite inflation and foreign-exchange risks.
Once settlement ends, the bonds will trade on the Nairobi Securities Exchange in multiples of Ksh50,000. Banks can also use them to meet liquidity rules under the Banking Act, and investors can pledge them as collateral for loans.
The Central Bank said it will publish details of the next bond issues for May 2026 in a prospectus before the sale date.
“The specific features of the Bond(s), that is the Tenor, Amounts, Coupon rates and issue terms will be provided in the prospectus before the issue date,” CBK stated.