Nairobi, June 18 -- The Central Bank of Kenya (CBK) rejected bids worth Sh35 billion in the latest Treasury bond auction as it pushed back against demands by investors for higher interest returns of up to 15 percent.

Investors offered Sh77.63 billion in the sale of two reopened 20 and 25-year papers that had a target of Sh60 billion, but the CBK took up Sh42.57 billion.

The 20-year bond pays annual interest of 13.2 percent, but investors asked for a yield of 14.1 percent on the paper in the sale. On the 25-year bond, they demanded a return of 15.1 percent, against its actual interest rate of 13.92 percent.

Reopened bonds normally come with an existing coupon or actual interest rate that was set when the bonds were floated for the first...