The Central Bank of Kenya (CBK) has accepted bids worth Ksh57.78 billion following the reopening of three Treasury bonds with a value date of July 13, 2026.

The auction attracted strong investor interest, with bids totalling Ksh74.67 billion against a target of Ksh70 billion.

According to the auction results released by the CBK on Wednesday, July 8, 2026, investors submitted bids worth Ksh74.666 billion, representing a subscription rate of about 106.7 per cent of the amount on offer.

Out of the total bids received, the CBK accepted Ksh57.778 billion, while Ksh16.888 billion was rejected.

According to CBK, the reopened FXD1/2022/010 10-year bond attracted bids worth Ksh 28.86 billion, of which Ksh 8.53 billion was accepted. It recorded a weighted average accepted yield of 12.9524 per cent and a coupon rate of 13.49 per cent.

The FXD1/2021/020 20-year bond received bids totalling Ksh 19.65 billion, with the CBK accepting Ksh 13.56 billion. The weighted average accepted yield stood at 14.5379 per cent, while the bond carries a 13.44 per cent coupon rate.

The biggest share of investor demand was directed to the newly issued FXD1/2026/030 30-year bond, which attracted Ksh 26.16 billion in bids. The CBK accepted Ksh 35.69 billion under the bond after including non-competitive bids, with the weighted average accepted yield settling at 14.5962 per cent. The bond offers a 12.50 per cent coupon rate.

August bond issues

The CBK also announced that details of the August 2026 Treasury bond issues, including the tenors, coupon rates and terms, will be published in the respective prospectuses ahead of the auction dates.

Treasury bonds remain one of the government’s key domestic borrowing instruments, allowing investors to earn fixed interest while helping finance public expenditure.

Importance of Treasury bond auctions

Treasury bond auctions are essential because they provide the government with long-term financing for development and budgetary needs without immediately increasing taxes. The funds raised are used to finance infrastructure projects such as roads, railways, schools and hospitals, support government operations and service delivery, refinance or repay maturing government debt, and bridge budget deficits when government expenditure exceeds revenue.