The Kenyan Government has raised more than Ksh 60 billion from local investors after reopening two long-term Treasury bonds, the FXD1/2019/020 and FXD1/2022/025, in an auction that ended on Wednesday, January 7, 2026.
According to the Central Bank of Kenya (CBK), which managed the sale, the auction attracted widespread investor interest, with total bids amounting to Ksh73.15 billion, a figure exceeding the government’s target of Ksh60 billion.
Out of the total bids, CBK accepted Ksh60.63 billion, showing strong confidence among Kenyans in lending to the government through Treasury bonds.
The 20-year bond, FXD1/2019/020, with about 13.2 years remaining to maturity, attracted bids totalling Ksh23.36 billion, with the government accepting Ksh20.29 billion.
The 25-year bond (FXD1/2022/025), with 21.8 years to maturity, was more popular, attracting bids worth Ksh48.18 billion, out of which Ksh40.34 billion was accepted.
According to a CBK press release, investors will earn an average interest rate of 13.26% (20-year bond) and 13.76% (25-year bond) with fixed coupon rates of 12.873% and 14.188%, respectively. As such, investors will receive predictable semi-annual interest payments every year.
According to CBK, investors were willing to pay a small premium for long-term returns as the market prices of the bonds were slightly above face value at Ksh101.02 and Ksh106.18 for the 20 and 25-year bonds, respectively.
The funds raised will help the government repay maturing debts and support domestic financing needs as part of its ongoing effort to manage borrowing costs and refinancing pressures.
The CBK explained that successful bidders must pay for their bonds by January 12, 2026, and that interest payments will be made twice a year, in April and October, until the bonds mature in March 2039 and September 2047, respectively.
The bonds are taxed at 10%, qualify as liquid assets for banks, and will be listed on the Nairobi Securities Exchange (NSE), allowing investors to sell them in the secondary market.
CBK’s Director of Financial Markets, David Lwanga, said details of new bond issues for February 2026 will be released soon, as the government continues to rely on domestic borrowing to support budgetary operations.
