NAIROBI, Kenya — The Central Bank of Kenya (CBK) has reopened two long-term Treasury bonds seeking to raise Sh40 billion in April, in a move aimed at funding government spending and managing maturing domestic debt.
The April issuance will be sold alongside the third bond switch operation of the fiscal year, targeting investors holding maturing 10-year paper as authorities seek to smooth repayment pressure and extend the maturity profile of public debt.
The reopened securities form part of a broader strategy by the National Treasury to lean more heavily on domestic borrowing amid constrained external financing.
Recent borrowing patterns show the government increasing reliance on local markets to plug budget gaps and refinance existing obligations.
According to the CBK prospectus, the offer comprises two fixed-coupon bonds with a combined target of Sh40 billion, with investors invited to submit bids during the April auction window.
The bonds are being marketed to institutional investors such as banks, pension funds, and insurance firms, as well as retail investors through the DhowCSD platform.
The switch auction allows holders of shorter-dated government securities to exchange them for longer-term bonds.
This mechanism helps the Treasury reduce refinancing risks by spreading repayments over a longer period, while giving investors an opportunity to lock in yields for extended tenors.
The April bond sale also comes amid improved liquidity in the domestic market, which has seen Treasury bill yields ease slightly as investor demand shifts toward longer-term instruments offering relatively higher returns.
Government securities remain a key financing channel for the Exchequer, particularly as external funding delays and rising expenditure needs widen the fiscal deficit. Domestic bond auctions enable the Treasury to raise funds locally while refinancing existing debt and supporting budget execution.
