During the period from July to October 2025, Kenya’s Treasury bond auctions attracted Sh832 billion bids against the advertised Sh300 billion, reflecting a remarkable performance of 277 percent, with the National Treasury accepting Sh490 billion bids.
As a result, the net cumulative borrowing from the domestic market as at October 27, 2025, was estimated at Sh399 billion, representing over 63 percent of the fiscal year's target of Sh634.75 billion.
This reflects investor confidence in long-term government bonds and the depth of the domestic debt market and reaffirms government’s economic stewardship and fiscal reform agenda.
The Infrastructure Bond issuance in August 2025 comprising of 7.5-year and 15.6-year papers was oversubscribed, receiving Sh530 billion bids against Sh140 billion offered, raising Sh272 billion in gross borrowing.
This was the largest bond issuance in the first quarter of the fiscal year. Another key highlight was the October 2025 bond auction which was subscribed at 237 percent, receiving Sh119 billion bids against Sh50 billion offered, with Sh85 billion raised in gross borrowing.
Beyond the impressive performance, this outcome speaks to the resilience of our domestic capital markets and the credibility of the macroeconomic framework the government has pursued over the past few years. It also reflects the success of policy efforts to stabilise the economy, entrench fiscal discipline, and strengthen Kenya’s position as an attractive destination for both local and foreign investment.
The appetite for long-term government securities is, above all, a vote of confidence in the predictability and coherence of our policies. It demonstrates the investors’ recognition of the impact of structural reforms aimed at deepening the domestic market, consolidating public finances, and streamlining expenditure.
The government has intentionally recalibrated the borrowing strategy, inclining toward the domestic market, a prudent shift designed to mitigate exposure to global interest rate volatility and exchange rate exposure shocks.
This approach ensures that local savings are channeled into financing local development, reinforcing the philosophy of “Kenyans funding Kenya’s future” while simultaneously enhancing liquidity within the domestic financial system.
Mobilising domestic resources is more than a fiscal necessity; it is an instrument of national empowerment. By investing in government securities, both institutional and individual investors become active participants in advancing Kenya’s development agenda.
Each purchase contributes directly to financing critical infrastructure, roads, energy, water, and social services, while each shilling invested locally circulates within the economy, deepening financial markets, strengthening institutions, and expanding opportunities for citizens and enterprises alike.
The Treasury remains committed to preserving macroeconomic stability. Our priorities are clear: to maintain inflation within target, ensure a predictable fiscal trajectory, and promote an environment conducive to private sector growth.
To further sustain investor confidence, we continue to enhance transparency and predictability in our bond issuance programme. In collaboration with the Central Bank of Kenya, we are improving auction scheduling, expanding retail investor participation through digital platforms, and ensuring timely dissemination of market information, including regular publication of our borrowing plan.
At the same time, we are implementing the Medium-Term Debt Management Strategy (MTDS), which carefully balances the country’s financing needs with long-term debt sustainability. The overarching objective is to guarantee that Kenya continues to meet its obligations comfortably while directing resources toward high-impact, growth-enhancing investments.
The oversubscription of the treasury bonds is therefore a reminder that Kenyans have a central role to play in financing the nation’s development ambitions. It exemplifies a partnership anchored on trust, transparency, and shared responsibility.
