The Central Bank of Kenya has launched a KSh 60Bn borrowing programme for April, combining a KSh 40Bn bond reopening with a KSh 20Bn switch auction as Treasury balances fresh issuance against maturity management in the final quarter of FY2025/26.
- •At KSh 40Bn, the offer is the smallest since September 2025 and follows targets of KSh 100Bn in February and KSh 60Bn in March.
- •The operation is the fifth bond switch in Kenya's history and the third in 2026.
- •The source bond is the same paper targeted in January, when CBK accepted KSh 25.17Bn against a KSh 20Bn offer, routing holders into the FXD1/2022/015 bond maturing in 2037.
Re-opening: KSh 40Bn
| Metric | FXD1/2020/015 | FXD1/2018/025 |
|---|---|---|
| Tenor | 15-Year (8.9 yrs remaining) | 25-Year (17.3 yrs remaining) |
| Coupon | 12.756% | 13.400% |
| Maturity | 05 Feb 2035 | 25 May 2043 |
| Accrued Interest | KSh 1.72 per KSh 100 | KSh 4.12 per KSh 100 |
Net borrowing through bond reopenings has reached KSh 687.50Bn across 13 auctions since July 2025, already exceeding the original domestic borrowing target of KSh 635.5Bn.
However, the Supplementary Estimates tabled in March revised that target sharply upward to KSh 885.9Bn, reflecting revenue shortfalls of KSh 115.3Bn by December 2025 and a KSh 262.9Bn increase in total expenditure to KSh 4.53Tn.
Switch: KSh 20Bn
| Metric | Source Bond | Destination Bond |
|---|---|---|
| Issue | FXD1/2016/010 | FXD1/2018/015 |
| Tenor | 10-Year (0.3 yrs remaining) | 15-Year (7.1 yrs remaining) |
| Coupon | 15.039% | 12.650% |
| Maturity | 17 Aug 2026 | 09 May 2033 |
| Dirty Price | 104.7992 | Multi-priced |
Treasury has simultaneously shifted its borrowing mix, cutting net external borrowing to KSh 254.8Bn while more than doubling commercial borrowing to KSh 579.4Bn following a $2.25Bn Eurobond issuance in February. The Eurobond proceeds were directed primarily toward liability management rather than net new funding.
Domestic debt has grown from KSh 6.31Tn at the start of the fiscal year to approximately KSh 7.08Tn by March 2026, with debt servicing absorbing KSh 545.9Bn in the first half of the year alone.
The smaller reopening offer suggests Treasury is calibrating issuance to close the gap against the revised target without flooding the market, while the larger switch target (up from KSh 15Bn in March) signals continued focus on smoothing redemptions ahead of concentrated maturities in the second half of 2026.
