The Central Bank of Kenya (CBK) has successfully raised 45.8 billion Kenyan shillings ($352 million) from the recent reopening of five and ten-year bonds, surpassing the target of $192 million. Investor interest was robust, with total bids reaching $366 million in the auction. The five-year paper attracted bids of $273 million, while the ten-year bond secured bids amounting to $94 million. Accepted bids promise returns of 18.41 percent for the five-year paper and 16.51 percent for the ten-year bond, with additional small discounts for investors. Leveraging reduced sovereign risk from recent Eurobond issuance, the CBK aims to recalibrate the domestic yield curve downwards, seeking to raise an additional $307 million from the sale of reopened two-year paper.
The successful bond issuance reflects investor confidence in Kenya’s economic stability and the government’s fiscal management. As the CBK continues its strategic financial initiatives, it reinforces Kenya’s position as an attractive destination for investment, contributing to the country’s economic growth and stability.