Read, Jan. 8 -- The first Treasury bond sale of 2026 was oversubscribed by 19.2 percent driven by strong demand from institutional investors who were chasing the relatively high returns on offer ahead of a possible decline in interest rates in coming months.

Why Treasury projects more interest rate cuts

Results of the salepublished by the Central Bank of Kenya (CBK) showed that investors offered a total of Sh71.54 billion on the pair of reopened 20- and 25-year bonds, against an advertised target of Sh60 billion. The CBK took up Sh60.58 billion from the offered bids.

Ahead of the sale, analysts had identified highly liquid institutional buyers, such as pension funds and fund managers, as a key source of demand for the bonds.

Pension f...