The Government of Kenya has reopened two key fixed-income bonds – FXD3/2019/015 and FXD1/2022/025 – seeking KES 40 billion to support the FY 2025/26 budget.
This month’s auction lands at a pivotal moment: the State faces KES 212.5B in November maturities, even as liquidity strengthens following the USD 872M Eurobond inflow. The result? A market full of opportunity, but with a disciplined government unlikely to entertain aggressive bids.
Why This Auction Matters
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High November obligations are keeping investor interest elevated.
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Government liquidity is strong, moderating upward pressure on yields.
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T-bill demand is rising, especially for longer-dated paper.
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Revenue performance is ahead of target, reducing reliance on domestic borrowing.
Key Bond Details
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FXD3/2019/015 — 8.7 years | Coupon: 12.3400%
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FXD1/2022/025 — 21.9 years | Coupon: 14.1880%
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Auction Window: 11–19 November 2025
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Settlement: 24 November 2025
Rock Advisors’ Recommended Bidding Ranges
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FXD3/2019/015: 12.75% – 12.95%
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FXD1/2022/025: 13.87% – 14.07%
Our Take
With liquidity high and interbank rates easing, the government is well-positioned to keep yields contained. Smart investors will calibrate their bids carefully – assertive enough to secure allocation, but within market-aligned levels.
Rock Advisors continues to guide investors through Kenya’s evolving fixed-income landscape with clarity, precision, and strategic insight.
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