By Benadeta Mwaura - Reporter
Kenya, June 09, 2026 - The Central Bank of Kenya (CBK) has announced a KSh15 billion Treasury bond tap sale, giving investors another opportunity to purchase long-term government securities as the State seeks to finance its budget requirements amid growing fiscal pressures.
The tap sale involves the reopening of two existing Treasury bonds, FXD1/2020/015 and FXD1/2018/025, carrying coupon rates of 12.756 percent and 13.400 percent, respectively. The offer will be conducted on a first-come, first-served basis.
In a notice to investors, the Central Bank said:
“The Central Bank of Kenya is pleased to offer eligible investors an opportunity to participate in a tap sale of the above Treasury bonds.”
The regulator added that the Tap Sale will be offered on a first-come, first-served basis.
The latest fundraising exercise comes barely days after the reopening of the two bonds attracted strong investor interest, prompting the government to return to the market to raise additional funds from investors who may have missed out during the initial auction.
A tap sale allows the government to raise additional funds from an already existing bond issue without launching a completely new security. The mechanism is often used when investor demand is strong or when the Treasury seeks to quickly mobilize resources for budgetary support.
The move comes at a time when the government is under pressure to finance a widening expenditure programme while simultaneously managing rising debt-servicing obligations.
Kenya's public debt is approaching the Sh13 trillion mark, with Treasury continuing efforts to reduce reliance on expensive external borrowing by deepening the domestic debt market.
The bond sale also coincides with the ongoing budget cycle following Parliament's approval of the 2026 Budget Policy Statement, which set a national government expenditure ceiling of Sh2.878 trillion for the 2026/27 financial year.
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Market analysts say Treasury bonds have remained attractive to institutional investors, pension funds, insurance firms and high-net-worth individuals because they offer relatively stable returns backed by the government.
Recent bond auctions have continued to record strong subscription levels despite concerns over liquidity in the market. In previous Treasury bond reopenings, investor demand has often exceeded the amounts targeted by the government, highlighting the appetite for fixed-income securities amid economic uncertainty.
The two bonds being reopened have remaining maturities of approximately nine years and seventeen years, respectively, making them attractive to investors seeking long-term returns.
Financial sector analysts note that the success of the tap sale will be closely watched as an indicator of investor confidence in government securities and the State's ability to finance its budget domestically.
The funds raised through the exercise are expected to support government expenditure and help bridge financing gaps as Treasury continues balancing development spending, recurrent expenditure and debt repayment obligations.
Investors interested in participating have been advised to submit their bids through the CBK's DhowCSD platform and authorized market intermediaries before the offer closes.