Kenya undertook several notable Treasury bond market operations in November 2025, led by the Central Bank of Kenya (CBK) on behalf of the National Treasury. These actions included the reopening of two fixed-rate Treasury bonds and the launch of a KSh 30 billion bond buyback aimed at managing upcoming domestic debt maturities. The bond reopenings were well received by the market, raising KSh 52.83 billion in total proceeds.
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Key developments during November 2025 included:
Bond Reopenings
On November 5, 2025, the CBK reopened two fixed-rate Treasury bonds:
- FXD1/2012/020 (20-year): Coupon rate of 12.0000%, maturing on November 1, 2032.
- FXD1/2022/015 (15-year): Coupon rate of 13.9420%, maturing on April 6, 2037.
The auction recorded robust investor participation. Of the KSh 52.83 billion accepted, 63.6% was allocated to the 20-year bond, underscoring continued investor preference for longer-duration securities. The resulting yields remained broadly consistent with pricing levels observed in October.
Bond Buyback Program
To proactively manage domestic debt obligations, the National Treasury initiated a KSh 30 billion buyback program targeting the FXD1/2023/003 bond, scheduled to mature in November 2026. The buyback was conducted through a multi-price auction, with bid submissions closing on November 17, 2025, and settlement on November 19, 2025.
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Market Context and Performance
These operations took place amid improving sentiment in Kenya’s capital markets. The Nairobi Securities Exchange (NSE) continued its upward trajectory, with market capitalization surpassing KSh 3 trillion for the first time. Local investors accounted for more than 70% of market activity, reinforcing the resilience of domestic demand for fixed-income and equity instruments.
Interest Rate Environment
The CBK maintained an accommodative monetary stance, having reduced the Central Bank Rate (CBR) to 9.25% at its October 7, 2025, meeting. This followed an earlier rate cut in August 2025 and helped sustain favorable borrowing conditions for the government and private sector.
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