The Central Bank of Kenya (CBK) raised Sh16.14 billion from the latest Treasury Bills auction after strong investor appetite for the 364-day paper.
This is a shift from the short term securities with investors now preferring longer-dated government securities amid stable interest rates.
According to auction results released by the CBK, bids worth Sh16.15 billion were received against an offer of Sh24 billion, translating to an overall performance rate of 67.3 per cent.
The 364-day Treasury Bill attracted the highest demand, with bids amounting to Sh11.19 billion against an offer of Sh10 billion, representing a performance rate of 111.9 per cent.
CBK accepted Sh11.18 billion, reflecting continued investor confidence in longer-term instruments.
“In contrast, the 91-day bill received bids of Sh3.57 billion against an offer of Sh4 billion, while the 182-day paper attracted Sh1.39 billion against an offer of Sh10 billion, highlighting weaker demand for mid-term securities,” said CBK Director, Financial Markets Robert Aloo
Interest rates remained largely stable across the tenors. The weighted average interest rate for the 91-day bill stood at 7.77 per cent, the 182-day bill at 7.80 per cent, and the 364-day bill at 9.23 per cent, with only marginal movements compared to the previous auction.
CBK data shows that Sh10.85 billion of the proceeds will be used to refinance maturing debt, while the remainder will go toward new borrowing, reflecting the government’s continued reliance on domestic debt markets to meet short-term financing needs .
Non-competitive bids accounted for Sh5.27 billion, offering small investors access to Treasury Bills at the weighted average accepted rates, while competitive bids totalled Sh10.87 billion .
The next Treasury Bills auction is scheduled for 29 December 2025, although CBK noted that the actual amount to be raised will depend on the National Treasury’s immediate liquidity requirements.
