Treasury Moves to Buy Back Ksh30 Billion Bond to Ease 2026 Repayment Pressure

Kenya, 10 November 2025 - The National Treasury has initiated a Ksh30 billion bond buyback program aimed at reducing pressure from upcoming domestic debt maturities in 2026. According to a notice by the Central Bank of Kenya (CBK), the buyback targets holders of the FXD1/2023/003 bond, which was issued in 2023 and carries a 14.228 percent coupon rate. The bond, which matures in May 2026, has an outstanding balance of about Ksh76.5 billion.

The CBK has invited investors to tender part or all of their holdings for early repurchase through the DhowCSD electronic platform by 10 a.m. on Monday, November 17, 2025. Participation is voluntary, with the government setting an upper limit of Ksh30 billion for the exercise.

Analysts say the buyback is designed to smooth out the government’s near-term debt redemption schedule and prevent a liquidity crunch in the next financial year. Kenya’s debt servicing obligations are projected to exceed Ksh1 trillion in interest payments alone during the 2025/2026 fiscal year.

Under the terms of the buyback, investors will submit competitive bids based on preferred yields, with CBK conducting a multi-price auction to determine final allocations.