Nairobi, Aug. 17 -- The National Treasury will now issue switch bonds monthly, giving holders of maturing securities a regular opportunity to reinvest their money in longer, more lucrative papers.

Previously, the government opened the swap bonds on a need basis, targeting securities whose repayment would trigger a repayment strain on the exchequer.

The Treasury's newly published 2026/2027 Annual Borrowing Plan is making the switch or swap bonds a regular issuance targeting between Sh10 billion and Sh20 billion.

These swap bonds will be offered by the Central Bank of Kenya (CBK) alongside the usual Treasury bond sales that are primarily used to finance the budget deficit.

A switch or swap bond occurs when holders of a paper that is nea...