Kenya's August 2025 infrastructure bond auction saw significant oversubscription, with the Central Bank of Kenya (CBK) accepting only a fraction of the bids received. This demonstrates strong investor confidence and a strategic move by the CBK to maintain a low-interest rate environment while financing development projects.

• The auction attracted bids totaling KShs 323 billion against a target of KShs 90 billion, with only KShs 95 billion accepted, reflecting a 29.4% acceptance rate.
• The IFB1/2018/015 (15-year) bond yielded 13.0% (effective 14.4% tax-free), and the IFB1/2022/019 (19-year) bond yielded 14.0% (effective 15.6% tax-free).
• In contrast, Treasury bills were undersubscribed for the third consecutive week, with the **91-day paper*being the only one oversubscribed at 123.2%.