The Central Bank of Kenya’s (CBK) latest Treasury bond switch auction attracted bids worth KSh3.78 billion against a target of KSh10 billion, representing a performance rate of 37.8%. The auction, which closed on November 9, 2026, and settled on November 11, was aimed at allowing investors holding selected government securities to exchange them for a longer-dated Treasury bond. Unlike an ordinary bond auction, where investors provide fresh money to the government in exchange for securities, a bond switch allows existing investors to surrender securities they already hold and receive another government bond in return. The arrangement helps the government manage its debt repayment schedule by moving obligations to a later maturity date.
For the November auction, CBK offered investors holding four existing government securities an opportunity to switch into FXD4/2019/010, a ten-year Treasury bond issued in 2019 that matures on November 12, 2029. The eligible securities included the five-year Treasury bond FXD1/2023/005, which matures in July 2028, and three Treasury bills: 2696/091, 2657/182 and 2585/364, all scheduled to mature on November 23, 2026. The destination bond carries a coupon rate of 12.28% per annum, with interest paid semi-annually. Investors were allowed to exchange part or all of their eligible holdings, with the government targeting KSh10 billion in switches.
