02/06/2026
Kenya's June 2026 bond auction opens on 3rd June, with the government targeting KES 40 billion ahead of the fiscal year close.
Two papers are on offer:
FXD1/2020/015 carries an 8.7-year tenure with a 12.756% coupon. FXD1/2018/025 runs 17.1 years at a 13.400% coupon.
Since the last time these papers traded in April 2026, market yields have risen approximately 80 basis points. Inflation hit a 28-month high of 6.7% in May, driven largely by fuel prices that began climbing after the USA-Iran war tightened global oil supply.
Our recommended bidding rates for this auction are 13.20% to 13.50% for FXD1/2020/015 and 13.80% to 14.10% for FXD1/2018/025, depending on your risk appetite.
KES 48.79 billion in coupon payouts falling due in June provides meaningful reinvestment flow into this auction. We expect healthy participation, particularly from institutional investors looking to reinvest at better rates than April offered.
Between the two papers, we see stronger value in the shorter-duration FXD1/2020/015 given the current rate environment.
Read the full Pre-Auction Note: https://pib.africa/resource/fixed-income-pre-auction-note-june-2026/
To participate, reach us at [email protected] or call +254 709 227 100.
