The government is seeking Ksh50 billion in a fresh treasury bond auction as the new financial year begins.
The Central Bank of Kenya (CBK), in a notice on Wednesday, said the Ksh50 billion will be directed towards budgetary support.
The Ksh50 billion is to be raised in a bond auction for 20‑year and 25‑year fixed‑coupon securities that opened on June 24 and close on July 9, with coupon rates set at 13.2 per cent and 13.4 per cent respectively.
“All successful bidders should obtain the payment key and amount payable from the CBK DhowCSD Investor Portal/App under the transactions tab on Friday, July 11, 2025, for FXD1/2018/020 and FXD1/2018/025,” the bank stated.
“Defaulters may be suspended from subsequent investment in Government Securities,” CBK warned.
The 20‑year bond will mature on March 1, 2038, while the 25‑year instrument matures on May 25, 2043.
According to CBK, Kenyans can participate via a non-competitive bid floor of just Ksh 50,000, although competitive bids require a minimum Ksh2 million per Central Securities Depository account.
Settlement is scheduled for Sunday, July 14.
“The Central Bank reserves the right to accept applications in full or part thereof or reject them in total without giving any reason,” the CBK said.
In the new budget passed last month, Treasury Cabinet Secretary John Mbadi indicated that the government aims to borrow a total of Ksh923.2 billion, with Ksh287.7 billion from external sources and a whopping Ksh635.5 billion from the domestic market.
The Ksh4.2 trillion budget, Kenya's largest in history, the National Treasury has projected revenue collection of Ksh3.322 trillion for the fiscal year 2025/26, including ordinary revenue, appropriations-in-aid, and grants.
Already, Kenya is in advanced talks with the International Monetary Fund for a new monetary deal.
These aim to replace the outgoing $3.6 billion (about Ksh466 billion in the current exchange rates) Extended Fund Facility and Credit Facility that expired in June.
