NAIROBI, Kenya — The Central Bank of Kenya (CBK) has invited investors holding the FXD1/2023/003 Treasury bond to participate in a voluntary buyback worth Sh 30 billion, ahead of the bond’s maturity in November 2026.
Announced on Monday, November 10, the move allows investors to sell part or all of their holdings in the 14.228pc coupon bond issued in 2023. The total outstanding debt for this issue stands at Sh 76.5 billion.
“Central Bank of Kenya, acting in its capacity as fiscal agent for the Republic of Kenya, invites bids for the above bond whose terms and conditions are as follows,” read a partial notice from the regulator.
Participation is voluntary, and only investors with unencumbered holdings—bonds not pledged or used as collateral—by November 17, 2025, are eligible.
Bids must be submitted electronically via the CBK DhowCSD system by 10:00 am on the same day. Successful bidders will receive payments on Wednesday, November 19, 2025.
The auction will use a multi-price bid system, with the Central Bank reserving the right to accept applications in full, partially, or reject them without providing reasons.
Investors with pledged bonds must cancel their contracts at least five business days prior to the buyback date to qualify. CBK has provided an online pricing calculator and a detailed guide to help investors estimate returns.
Analysts say such buybacks are part of the government’s debt management strategy. Kenya is facing a surge in domestic bond maturities, and repurchasing bonds ahead of time reduces the pressure to refinance large sums simultaneously, which can be costly amid high yields on long-term debt.
The last CBK buyback, in February 2025, involved three bonds—three-year, five-year, and nine-year infrastructure bonds—totaling Sh 185.05 billion, with coupon rates ranging from 11.667pc to 12.5pc. Payments to successful bidders were made on February 19, 2025.
“The buyback programme helps the government manage debt efficiently, reducing the need to borrow at higher rates or under less favourable conditions,” said an analyst at a Nairobi-based financial research firm.
The current auction reflects the government’s ongoing efforts to balance debt repayment schedules, stabilize borrowing costs, and maintain investor confidence in the domestic bond market.
