NAIROBI, Kenya– The Central Bank of Kenya (CBK) has opened a Sh50 billion tap sale of Treasury bonds following the rejection of a large portion of bids in last week’s August reopening.
The sale, which began on August 19 and closes on August 21, allows investors to acquire additional units of the 15-year IFB1/2018/015 and 19-year IFB1/2022/019 bonds.
The 15-year bond carries a coupon rate of 12.5% with an accepted yield of 12.99%, while the 19-year paper offers a coupon of 12.97% and an accepted yield of 13.99%.
The bonds are priced at adjusted average rates of Sh99.3937 and Sh94.8458 per Sh100.00, respectively, with settlement for successful bids scheduled for Monday, August 25, 2025.
Earlier, the government had targeted Sh90 billion in borrowing during the August reopening, attracting bids totaling Sh323.4 billion a 259.3% oversubscription.
Of this,Sh228.4 billion, or 70.7%, was rejected, leaving only Sh95.0 billion accepted, representing a 29.3% acceptance rate.
Non-competitive bids made up Sh64.1 billion, or 67.4% of the accepted amount.
The accepted amount closely matched Sh94.6 billion in redemptions due on the same date.
David Luusa, Director of Financial Markets at CBK, said the tap sale is being conducted on a first-come-first-served basis, with bids priced at the average rate of accepted bids from the August auction, adjusted for accrued interest.
“The tap sale offers investors an opportunity to participate in the same bonds at the prevailing market rates.”
The move reflects the government’s strategy to manage borrowing costs while meeting financing needs.
Analysts say the oversubscription in the initial auction, followed by the large-scale bid rejection, signals cautious investor sentiment, likely influenced by the relatively high yields on offer.
Investors wishing to participate are advised to submit bids by 2 p.m. on Thursday, August 21, or until the Sh50 billion offered is fully subscribed.
Successful bidders will be notified via the DhowCSD Investor Portal/App, with payments due by 2 p.m. on Monday, August 25, 2025.
