CBK Seeks Ksh50 Billion in Treasury Bonds to Fund 2025/26 Budget
The Central Bank of Kenya (CBK) has announced a fresh move to raise Ksh50 billion through treasury bonds. The funds are urgently needed to support the government’s record Ksh4.2 trillion 2025/26 budget.
In an official notice released Wednesday, CBK confirmed that the auction marks the beginning of the new financial year.
“This amount will go towards budgetary support,” the CBK stated.
This decision comes just weeks after Treasury CS John Mbadi unveiled Kenya’s largest-ever budget. In it, the government outlined plans to borrow a total of Ksh923.2 billion. Of this, Ksh287.7 billion will come from external lenders, while Ksh635.5 billion is expected from the domestic market.
Strict Terms for Investors
CBK outlined specific rules for participants.
The bond auction features two tenors—a 20-year bond maturing on March 1, 2038, and a 25-year bond set to mature on May 25, 2043.
“Kenyans can participate with a non-competitive bid of just Ksh50,000,” CBK announced.
However, CBK emphasized that competitive bids will only be accepted for minimums of Ksh2 million per Central Securities Depository account.
Settlement for the bond is slated for Sunday, July 14.
No Guarantees
The CBK was clear on the level of discretion it maintains over applications.
“The Central Bank reserves the right to accept applications in full, in part, or reject them entirely without providing reasons,” CBK stated.
In a stern warning, CBK added:
“Defaulters may be suspended from participating in future government securities.”
This underlines the seriousness of the state’s borrowing agenda.
Kenya Turns to IMF Amid Budget Woes
In the background, the government is in advanced talks with the International Monetary Fund (IMF) for a new financial agreement. This would replace the recently expired $3.6 billion Extended Fund and Credit Facility.
This facility, worth around Ksh466 billion, ended in June 2025.
With the National Treasury projecting Ksh3.322 trillion in revenue, including grants and appropriations-in-aid, the gap remains wide. The reliance on both internal and external borrowing continues to grow.
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CBK Seeks Ksh50 Billion in Treasury Bonds to Fund 2025/26 Budget
