CBK Launches KSh 50Bn Tap Sale After Rejecting KSh 228Bn on Reopened Tax-Free IFBs
CBK has launched a KSh 50Bn tap sale of tax-free infrastructure bonds after a record KSh 323.4Bn oversubscription..
✨ Key Highlights
The Central Bank of Kenya (CBK) has launched a KSh 50 billion tap sale of two infrastructure bonds, following last week's significant oversubscription which saw KSh 228 billion in rejected bids.
- The sale, running from August 19 to August 21, 2025, includes the fifteen-year IFB1/2018/015 and nineteen-year IFB1/2022/019.
- The initial offer attracted bids worth KSh 323.4 billion against a target of KSh 90 billion, with CBK accepting KSh 95 billion.
- This tap sale aims to capitalize on strong investor interest in tax-free government securities, with allotment on a first-come, first-served basis.
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CBK Launches KSh 50Bn Tap Sale After Rejecting KSh 228Bn in Bond Bids - August 2025
The Central Bank of Kenya (CBK) has launched a KSh 50 billion tap sale of two infrastructure bonds. This action follows the August 2025 infrastructure bond auction, which saw a significant oversubscription where the CBK rejected KSh 228 billion in bids. The CBK's decision to accept only a fraction of the bids was a strategic move to maintain a low-interest rate environment while financing projects. A new CBK survey provides context, revealing an uneven economic recovery in Kenya. The survey found that while sectors like agriculture, finance, and ICT are expanding, the manufacturing and health sectors are struggling with severe liquidity issues and high operational costs.
