Kenya seeks $260 million in market funding to cover budget shortfall

“The Central Bank of Kenya, acting as fiscal agent for the Republic of Kenya, invites bids for the above bonds,” the statement read.

The 15-year bond offers an annual return of 12.34 percent, while the 25-year paper yields 14.19 percent, both subject to a 10 percent withholding tax.

According to the National Treasury, Kenya’s total public debt increased by Sh250 billion (approximately $1.63 billion) between June and September 2025, primarily driven by domestic borrowing of Sh340 billion ($2.22 billion).

Meanwhile, external debt declined by approximately Sh80 billion ($520 million) over the same period.

This shift reflects President William Ruto’s ongoing push to reduce exposure to costly external loans, which often heighten foreign exchange pressures on the Kenyan shilling.

CBK noted that secondary trading for both bonds will begin on November 24 through the DhowCSD platform or licensed financial institutions, allowing investors to trade in multiples of Sh50,000 ($325).

Analysts view the reopening of these long-dated papers as part of CBK’s strategy to lengthen the maturity profile of domestic debt while offering investors stable, long-term income opportunities amid stabilising interest rates and easing inflation expectations.

As Kenya balances fiscal consolidation with the need to maintain infrastructure and social spending, Treasury bonds remain a vital lever in its domestic resource mobilisation strategy.