- CBK raises Ksh30.62 billion in oversubscribed Treasury bills auction
- 91 day Treasury bill records strongest investor demand
- Government secures Ksh11.52 billion in net new borrowing
The Central Bank of Kenya (CBK) raised Ksh 30.62 billion in a Treasury bills auction that attracted strong demand from investors, even as appetite varied across the three tenors on offer.
The regulator released the auction results on Thursday, July 16, 2026. The government had offered Ksh 28 billion across the 91-day, 182-day and 364-day Treasury bills, dated July 20, 2026. Investors bid a total of Ksh 44.02 billion, giving an overall performance rate of 157.22 percent. The CBK accepted Ksh 30.62 billion of these bids, beating its initial target, with the 91-day paper driving much of the market’s appetite.
The 91-day Treasury bill attracted the highest investor interest. Bids reached Ksh 24.36 billion against a target of Ksh 8 billion, a performance rate of 304.44 percent, the highest of the three tenors. The CBK accepted Ksh 12.89 billion of these bids at a weighted average interest rate of 8.7986 percent.
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The 182-day bill also saw strong participation. Bids reached Ksh 15.15 billion against the Ksh 10 billion on offer, a performance rate of 151.53 percent. The CBK accepted Ksh 13.23 billion at a weighted average interest rate of 8.9695 percent.
Demand for the 364-day bill was weaker. Investors offered only Ksh 4.51 billion against a target of Ksh 10 billion, a performance rate of 45.12 percent. The CBK accepted the full Ksh 4.51 billion at a weighted average interest rate of 9.0415 percent.
The 91-day bill recorded the highest bid-to-cover ratio at 1.89, followed by the 182-day bill at 1.15. The 364-day bill, which was undersubscribed, had a bid-to-cover ratio of 1.00 after all bids were accepted.
Of the Ksh 30.62 billion accepted, competitive bids made up Ksh 23.08 billion, while non-competitive bids brought in the remaining Ksh 7.54 billion.
The CBK said Ksh 19.10 billion of the accepted funds will go towards refinancing maturing Treasury bills through rollovers and redemptions. The remaining Ksh 11.52 billion represents net new borrowing to help fund the government’s immediate budgetary needs. The bank noted that the final amount used from the auction will depend on the National Treasury’s liquidity needs through the week.
Individual bids must meet minimum thresholds to qualify: Ksh 50,000 for non-competitive bidding and Ksh 2,000,000 for competitive bidding. Non-competitive bids are capped at Ksh 50 million per investor account per tenor, except for state corporations, public universities and semi-autonomous government agencies. Only investors with active Central Securities Depository (CSD) accounts can take part.
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Treasury bills remain one of the government’s main short-term domestic borrowing tools, allowing it to raise funds from commercial banks, pension funds, insurance firms and individual retail investors to meet its fiscal obligations.
The next Treasury bills auction, covering Issues 2692/091, 2666/182 and 2621/364 dated July 27, 2026, will close on Thursday, July 23, 2026, with results expected the same day.
By Bernard Magada
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