Demand for short-term government securities remained strong this week, with the Central Bank of Kenya (CBK) recording an oversubscription in its latest Treasury bills auction held on October 27, 2025.
According to results released by the CBK, the government sought to raise Ksh24 billion from three tenors — 91, 182, and 364 days — but received total bids worth Ksh25.4 billion, representing an overall performance rate of 105.85 percent.
The 91-day paper attracted the highest investor appetite, receiving Ksh12.99 billion against an offer of Ksh4 billion, translating to a performance rate of 325 percent. The 182-day and 364-day tenors, however, registered lower demand at 70.33 percent and 53.72 percent respectively.
Out of the total bids received, the CBK accepted Ksh25.38 billion. Of this, Ksh12.18 billion came from competitive bids, while non-competitive bids accounted for Ksh13.21 billion.
The average interest rates slightly eased across all tenors compared to the previous auction. The 91-day bill averaged 7.829 percent, down from 7.859 percent; the 182-day bill stood at 7.865 percent from 7.909 percent; while the 364-day bill dropped marginally to 9.347 percent from 9.365 percent.
Investors in the 91-day, 182-day, and 364-day bills will pay Ksh98.09, Ksh96.23, and Ksh91.47 per Ksh100 face value respectively. The market-weighted average interest rates were reported at 7.83 percent, 7.87 percent, and 9.35 percent respectively.
The CBK indicated that proceeds from the auction will largely go towards rolling over maturing debt amounting to Ksh45.5 billion, leaving a net repayment position estimated at Ksh3.52 billion.
Non-competitive bids were capped at Ksh50 million per investor account per tenor, except for State corporations, public universities, and semi-autonomous government agencies (SAGAs).
The next Treasury bills auction, for issues 2654/091, 2628/182, and 2582/364, is scheduled for October 30, 2025, with results expected to be announced the same day.
The strong subscription reflects continued investor preference for shorter-dated government securities amid expectations of monetary tightening and a cautious approach to long-term debt.
The CBK noted that allocations will depend on the National Treasury’s immediate liquidity needs and retained its discretion to accept or reject bids in part or in full.
