Kenya’s first bond issue of 2025/26 has recorded an impressive performance of 153 per cent attracting bids amounting to Sh76.9 billion in just less than two weeks into the financial year. 

This shows the untenable appetite that the Kenyan investors have on government securities. 

The government offered two different bonds – FXD1/2018/020 AND FXD1/2018/025 dated 14/07/2025 with total amount offered being Sh50 billion with the bonds having coupon rates of 13.2 and 13.4 per cent respectively. 

Specifically, the 20-year tenure attracted bid amounting to Sh33.07 billion recording a performance rate of Sh66.15 per cent with a market weighted average rate of 13.94 per cent. 

Out of the total amount, the Central Bank of Kenya (CBK) accepted bids amounting to Sh30.5 billion with the competitive bids coming at Sh24.07 billion and non-competitive bids standing at Sh6.5 billion.  Its weighted average rate of accepted bids stood at 13.89 per cent. 

On the other hand, the slightly longer bond, the 25-year period, attracted investors money amounting to Sh43.83 billion indicting a performance rate of 87.66 per cent at a market weighted average rate of 14.43 per cent. 

The government accepted bids totaling Sh36.07 billion out of which Sh29.51 billion was categorised as the competitive bids while Sh6.56 billion fell at the non-competitive bids category. Its weighted average rate of accepted bids stood at 14.34 per cent. 

“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 said in the results statement. 

Meanwhile, through the last bond issue of the previous financial year, 2024/25 – week ending June 20 2025, the government was also able to collect a total of Sh71.638 billion from the reopened 15- and 30-year treasury bonds of issue numbers: FXD1/2020/015 SDB1/2011/030. 

Performance rate

This was against the offered Sh50 billion with a bid-to cover ratio set at 1.41. Cumulatively, the bonds attracted bids amounting to Sh101.3 billion recording a performance rate of 202.72 per cent.    “The reopened 15-year and 30-year treasury bonds received bids totalling Sh101.4 billion against an advertised amount of Sh50 billion, representing a performance of 202.7 per cent,” the June 20 bulletin reads in part.   

On specific bonds, the 15-year treasury bonds, FXD1/2020/015 had the lion share attracting bids amounting to Sh84.7 billion, representing a performance rate of 169.47. Out of this, CBK accepted bids amounting to 57.8 billion with the competitive bids being Sh44.71 billion while the non-competitive bids amounted to Sh13.15 billion.   

The bid-to-cover ratio for this specific one was 1.46 while the Market Weighted Average Rate and the Weighted Average Rate of Accepted Bids came in at 13.60 and 13.48 per cent respectively. Its coupon rate stood at 12.75 per cent.    The 30-day treasury bill SDB1/2011/030 on the other hand attracted bids amounting to Sh16.6 billion marking a performance rate of 33.25 per cent.   

The accepted bids for the bond stood at 13.77 billion at a coupon rate of 12 per cent with the competitive bids being Sh11.1 billion and the non-competitive falling at Sh2.6 billion.

Its bid-to-cover ratio was put at 1.21 as the   Market Weighted Average Rate and the Weighted Average Rate of Accepted Bids stood at 14.1 per cent and 13.99 per cent respectively.