Central Bank of Kenya Targets KES 80bn from Reopen Bonds
The Central Bank of Kenya (CBK) is scheduled to reopen three Treasury bonds on Wednesday as the authority anticipates a large payout in May.
The National Treasury, through the CBK, is seeking to raise KES 80billion for budgetary support by reopening three bonds under number FXD1/2012/020 (6.6 years, 12.000% coupon), FXD1/2019/020 (13.0 years, 12.873% coupon), & FXD1/2021/025 (20.1 years, 13.924% coupon).
CBK is opening subscription offers amid the Kenyan government’s high liquidity demand, with KES 150.94 billion in payouts due in May 2026, investment firm Pergamon said in a note.
The expected outflow includes KES 67.39 billion in bond maturities from two papers (FXD1/2023/003 – KES 57.13 billion; IFB1/2020/006 – KES 10.25 billion), as well as KES 83.55 billion in coupon payouts in May 2026.
Projecting, Pergamon told investors that high government liquidity demand is expected to drive overall interest rates higher, particularly for offered paper, even as heavy payouts are projected to support oversubscriptions through reinvestments, Pergamon said in a pre-auction report.
The investment firm added that this will further benefit from a broader shift away from treasury bills toward other investment options, including short-dated bonds.
Investment analysts said the yield curve has generally shifted upwards in the last month under the influence of this auction’s re-opening in the primary market.
The upward shift is further influenced by higher Government liquidity demand, which is expected to see heavy acceptance from the Government. The short end of the yield curve widened faster amid what appears to be elevated demand than the long end.
At its last auction in Nov. 2025, the paper’s weighted market-average yield to maturity (YTM) stood at 12.6383%, and a bid of 12.4707% was accepted.
FXD1/2019/020 (13.0 years, 12.873% coupon) has KES 148.88 billion outstanding, with coupons due in October and April semiannually. Investment banking firm Pergamon said this is the third time the paper has been reopened in 2026.
Its March 2026 re-opening saw a total of KES 50.50 billion issued, with KES 44.85 billion accepted, yielding a YTM of 12.9489% against a weighted market average rate of 12.7864%.
In its Jan-2026 issue, the paper’s market rate stood at 13.3289%, while the Government accepted bids at 13.2623%. FXD1/2021/025 (20.1 years, 13.924% coupon) was last reopened in March 2026, with its market-weighted average rate at 13.3611%, and bids below 12.9489% were accepted.
The paper remains among the most preferred by investors owing to its attractive return. FXD1/2012/020 (6.6 years, 12.000% coupon) has an outstanding balance of KES 154.21 billion, with the coupon date coinciding with this auction’s value date.
Pergamon said this is the third time the paper has been reopened in 2026. Its March 2026 re-opening saw a total of KES 50.50 billion issued, with KES 44.85 billion accepted, yielding a YTM of 12.9489% against a weighted market average rate of 12.7864%. Nigeria Unveils Long-Term Energy Plan –NUPRC
