CBK Scores Hat-Trick of Records on Three Infrastructure Bonds

Central Bank of Kenya (CBK) has set three marks with its latest infrastructure bond reopening: a record KSh 150Bn offer, record bids of KSh 460.40Bn and record acceptances of KSh 312.03Bn, highlighting exceptional demand for the three tax-free securities. 

• The Central Bank of Kenya accepted more than twice the amount initially advertised after demand reached 307% of the offer.
• The KSh312.03Bn accepted is the largest amount in the Treasury bond auction series reviewed, while the KSh 460.40Bn in bids also sets a new high.
• Of the KSh 312.03Bn accepted, KSh118.14Bn was applied to redemptions, leaving KSh193.89Bn as net new borrowing.

The reopening covered IFB1/2019/016, IFB1/2021/018 and IFB1/2021/021, which mature in October 2035, March 2039 and August 2042, respectively.

Demand was strong across all three securities. IFB1/2019/016 attracted KSh166.22Bn in bids and CBK accepted KSh 112.64Bn. IFB1/2021/018 received KSh 154.90Bn and secured KSh 105.54Bn, while the longest-dated IFB1/2021/021 drew KSh 139.28Bn and recorded acceptances of KSh 93.85Bn.

Average accepted yields were 12.1960% on IFB1/2019/016, 12.6877% on IFB1/2021/018 and 13.0520% on IFB1/2021/021. All three securities cleared above par, with prices ranging from KSh 101.8778 to KSh 104.4961 per KSh 100.

Non-competitive bids accounted for KSh143.99Bn of the accepted amount, compared with KSh 168.04Bn from competitive bids, showing broad participation beyond investors setting their own yields.

The results reinforce infrastructure bonds as one of Treasury’s strongest domestic funding instruments, with their tax-free treatment helping sustain demand even across maturities extending into the 2040s.