Sharp Daily
No Result
View All Result
Sunday, October 19, 2025
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
Sharp Daily
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
No Result
View All Result
Sharp Daily
No Result
View All Result
Home Economy

Kenya’s first domestic bond buyback hits target: implications for the economy

Kevin Cheruiyot by Kevin Cheruiyot
February 20, 2025
in Economy
Reading Time: 1 min read

Kenya’s first-ever domestic bond buyback has been successfully executed, raising KES 50.8 bn—slightly surpassing the KES 50 bn target. This is debt management strategy as the government seeks to ease refinancing pressures ahead of major bond maturities in 2025.

In February, the Central Bank of Kenya (CBK) launched the bond buyback targeting three government securities worth KES 185.1 bn;3-year bond maturing in April 2025,5-year bond maturing in May 2025 and 9-year infrastructure bond maturing in May 2025. Following the buyback, the total amount due in April-May 2025 has been reduced to KES 135.1 bn, easing future repayment burdens.

Importance of Bond Buyback

  1. Reducing Refinancing Risk

By cutting the April-May 2025 maturities from KES 185.1 bn to KES 135.1 bn, the government has eased short-term repayment pressure, improving debt sustainability.

RELATEDPOSTS

Kenya shifts to bond financing for SGR and JKIA expansion

October 13, 2025

CBK announces KES 70 billion bond sale for infrastructure projects

January 24, 2025
  1. Managing Domestic Borrowing Pressures

The buyback comes as Kenya increases its domestic borrowing target for the 2024/25 fiscal year to KES 582.7 bn, up from KES 413.1 bn. Reducing short-term liabilities helps prevent excessive pressure on the local bond market.

  1. Supporting Investor Confidence

A successful buyback signals fiscal discipline, boosting confidence among investors and rating agencies in Kenya’s ability to manage debt effectively.

Kenya’s first domestic bond buyback demonstrates a proactive debt management approach, reducing refinancing risks and stabilizing the domestic bond market. As the government navigates rising borrowing needs, further buybacks and strategic bond issuances will be key in maintaining fiscal stability and investor confidence.

Previous Post

Wealth-building wednesday: Make midweek count with CMMF

Next Post

Kenya’s parliamentary majority status dispute heads to court of appeal

Kevin Cheruiyot

Kevin Cheruiyot

Related Posts

Economy

World Bank Urges Kenya to Raise Excise and Carbon Taxes to Strengthen Fiscal Stability

October 13, 2025
Economy

Audit reveals gaps in Kenya’s unclaimed assets system

October 9, 2025
Economy

The economic and environmental gains of Kenya’s LPG shift

October 8, 2025
Economy

Understanding the link between international aid and cooperative finance stability in Sub-Saharan Africa

October 3, 2025
Economy

Fed cuts rates for first time since 2022

September 18, 2025
Economy

How increased oversight can clean up the insurance sector without stifling innovation

September 11, 2025

LATEST STORIES

The Challenge of Preserving Retirement Savings in Kenya

October 16, 2025

Understanding Segregated vs Guaranteed Pension Schemes

October 16, 2025

The Sanlam-Jubilee deal

October 16, 2025

Kenya’s industrial real estate awakening

October 16, 2025

Stanbic Kenya in advanced talks to acquire NCBA: A game-changer in Kenya’s banking sector

October 16, 2025

CBK flags surge in financial fraud as losses triple to KES 1.6 billion

October 15, 2025

StanChart Kenya retirees face fresh legal stalemate over KES 7.0 billion pension payout

October 15, 2025

U.S. bank earnings take center stage amid government data freeze

October 15, 2025
  • About Us
  • Meet The Team
  • Careers
  • Privacy Policy
  • Terms and Conditions
Email us: editor@thesharpdaily.com

Sharp Daily © 2024

No Result
View All Result
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team

Sharp Daily © 2024