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Investors switch Sh25bn into lower-return bond
Domestic debt maturities are usually funded by rolling over the debt via new bond issuances, and rarely through repayments from tax collections since the government is already running a budget deficit.
Investors who held a 10-year bond maturing in August 2026 agreed to roll over Sh26.49 billion of their paper into a 15-year bond in the current fiscal year’s first switch bond issuance.
The Central Bank of Kenya (CBK) said that it accepted rollovers of Sh25.17 billion against its target of Sh20 billion. The 15-year paper, which is known as a destination bond, was issued in April 2022, giving it a period to maturity of 11.3 years.
