The dual-tranche offering featured the 15-Year Fixed Coupon Treasury Bond [FXD1/2020/015] and the 30-Year Savings Development Fixed Coupon Bond [SDB1/2011/030].
The auction attracted total bids worth KSh 101.36 billion, resulting in a performance rate of 202.72%.
The auction reflected a shift by institutional investors amid falling short-term returns.
In the week prior, T-bill yields dropped to their lowest since June 2022, following the CBK’s rate cut. The 364-day bill fell to 9.75%, while the 91-day and 182-day papers declined to 8.18% and 8.49%.
Though the 91-day was oversubscribed (364.9%), demand for the longer T-bills was weak. The government raised just KSh 2.57B and KSh 2.99B on the 182- and 364-day bills against offers of KSh 10B each.
This shift paved the way for the reopened bond auction’s strong uptake, with yields above 13% drawing investor interest to longer-term papers.
Bond Auction Snapshot
CBK accepted KSh 57.87B in the 15-Year FXD1/2020/015 and KSh 13.77B in the 30-Year SDB1/2011/030, raising a total of KSh 71.64B—all for new borrowing. Yields were 13.49% (FXD) and 13.99% (SDB), both above their coupon rates.
This signals strong investor demand for long-term bonds, fueled by attractive returns and easing liquidity.
Metric FXD (15-Yr) SDB (30-Yr) Total
Bids Received KSh 84.73B KSh 16.62B KSh 101.36B
Bids Accepted KSh 57.87B KSh 13.77B KSh 71.64B
Avg Yield 13.49% 13.99% —
Coupon 12.756% 12.000% —