The National Treasury has successfully raised Sh71.4 billion in its latest Treasury Bonds auction held on April 2, 2025.

The funds will primarily redeem Sh90.85 billion in maturing obligations, with the remaining Sh19.45 billion allocated for net repayment or new borrowing. 

This strategic issuance reflects the government’s focus on debt management while sustaining development initiatives and addressing fiscal gaps. 

The auction attracted bids totalling Sh71.73 billion, surpassing the Sh70 billion target and achieving a performance rate of 102.47 per cent—a testament to investor confidence in government securities despite prevailing macroeconomic challenges.

Three bonds were offered: FXD1/2020/015, FXD1/2022/015, and FXD1/2022/025.

Among them, FXD1/2022/025 emerged as the most sought-after, drawing Sh32.68 billion—nearly half the total—due to its longer tenor and higher coupon rate of 14.1880 per cent. 

Institutional investors dominated, with competitive bids accounting for Sh51.62 billion, while non-competitive bids contributed Sh19.78 billion, reflecting retail participation from investors seeking stable returns. 

The weighted average interest rates ranged from 13.6652 per cent to 14.2342 per cent, offering attractive yields for long-term commitments.

FXD1/2022/025 provided the highest return at 14.2342 per cent, appealing to investors prioritizing extended tenors and higher earnings. 

Bond pricing varied based on market valuation.

FXD1/2020/015 was discounted at Sh96.83 per Sh100, while FXD1/2022/015 and FXD1/2022/025 were priced at premiums of Sh107.08 and Sh106.22 per Sh100, respectively. 

This auction highlights the government’s calibrated approach to addressing financial obligations while creating investment opportunities for market participants.

Investor enthusiasm reflects trust in Kenya’s fiscal management and economic resilience amidst inflationary pressures and global uncertainties.

The slight oversubscription further signals cautious optimism among investors who view government-backed securities as reliable options during volatile times.