Govt Seeks Ksh50 Billion Loan From Kenyans to Fund 2025/26 Budget
The government is looking to raise Ksh50 billion through a new treasury bond auction as we kick off the new financial year.
According to a notice from the Central Bank of Kenya (CBK) released on Wednesday, this Ksh50 billion will be used to support the budget.
The funds will come from a bond auction featuring 20-year and 25-year fixed-coupon securities, which opened on June 24 and will close on July 9. The coupon rates are set at 13.2 percent and 13.4 percent, respectively.
“All successful bidders should obtain the payment key and amount payable from the CBK DhowCSD Investor Portal/App under the transactions tab on Friday, July 11, 2025, for FXD1/2018/020 and FXD1/2018/025,” the bank stated.
“Defaulters may be suspended from subsequent investment in Government Securities,” CBK warned.
The 20-year bond is set to mature on March 1, 2038, while the 25-year bond will reach maturity on May 25, 2043.
According to the Central Bank of Kenya (CBK), Kenyans can get involved with a non-competitive bid starting at just Ksh 50,000. However, if you’re looking to place a competitive bid, you’ll need a minimum of Ksh 2 million per Central Securities Depository account.
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Mark your calendars for Sunday, July 14, as that’s when the settlement is scheduled to take place.
“The Central Bank reserves the right to accept applications in full or part thereof or reject them in total without giving any reason,” the CBK said.
In the recent budget approved last month, Treasury Cabinet Secretary John Mbadi announced that the government plans to borrow a total of Ksh923.2 billion. This includes Ksh287.7 billion from external sources and a staggering Ksh635.5 billion from the domestic market.
This Ksh4.2 trillion budget marks the largest in Kenya’s history, with the National Treasury estimating a revenue collection of Ksh3.322 trillion for the fiscal year 2025/26. This figure encompasses ordinary revenue, appropriations-in-aid, and grants.
Additionally, Kenya is currently in advanced discussions with the International Monetary Fund regarding a new monetary agreement. This new deal is set to replace the outgoing $3.6 billion (approximately Ksh466 billion at current exchange rates) Extended Fund Facility and Credit Facility, which expired in June.
Govt Seeks Ksh50 Billion Loan From Kenyans to Fund 2025/26 Budget
