The Central Bank of Kenya (CBK) has reopened two long-term Treasury Bonds—FXD1/2018/020 and FXD1/2018/025—marking its first domestic bond issuance for the next financial year.

This issuance comes just a week after CBK collected KSh 71.64 billion through a reopened bond auction that featured the 15-year FXD1/2020/015 and 30-year SDB1/2011/030 papers. The auction attracted KSh 101 billion in bids and cleared at average yields of 13.49% and 13.99%, respectively.

Following CBK’s policy rate cut in June, investors have increasingly shifted their focus to long-term bonds. The move led to a drop in T-bill yields, with the 91-day paper falling to 8.18%, its lowest level since 2022. Consequently, the reduced short-term returns prompted a pivot toward longer maturities offering higher yields.

Meanwhile, Kenya’s domestic debt stock surpassed KSh 6 trillion in June for the first time. Treasury bill holdings rose sharply to KSh 1.003 trillion, reflecting increased short-term borrowing. Furthermore, interest payments are projected to exceed KSh 1 trillion this fiscal year.