The Central Bank of Kenya (CBK) has raised Ksh30.62 billion through an oversubscribed Treasury bills auction, reflecting strong investor demand for short-term government securities despite mixed appetite across the three tenors.

According to the auction results released on Thursday, July 16, the government offered a total of Ksh28 billion through 91-day, 182-day and 364-day Treasury bills dated July 20, 2026. Investors submitted bids worth Ksh44.02 billion, translating to an overall performance rate of 157.22 per cent.

The CBK accepted Ksh30.62 billion, exceeding the amount initially offered, with the strongest demand recorded in the 91-day Treasury bill.

Short-term bills attract strongest demand

The 91-day Treasury bill received bids worth Ksh24.36 billion against an offer of Ksh8 billion, giving it a performance rate of 304.44 per cent. The CBK accepted Ksh12.89 billion at a weighted average interest rate of 8.7986 per cent.

The 182-day bill also attracted strong demand, receiving bids worth Ksh15.15 billion against Ksh10 billion on offer, representing a performance rate of 151.53 per cent. The Central Bank accepted Ksh13.23 billion at a weighted average interest rate of 8.9695 per cent.

“The Central Bank reserves the right to accept/reject bids in part or in full without giving any reason. Individual bids must be of a minimum face value of Ksh50,000.00 for Non-Competitive and 2,000,000.00 for Competitive. Only investors with active CSD accounts are eligible,” read the statement in part.

Demand was lower for the 364-day Treasury bill. Investors submitted bids worth Ksh4.51 billion against the Ksh10 billion offered, resulting in a performance rate of 45.12 per cent. The CBK accepted Ksh4.51 billion at a weighted average interest rate of 9.0415 per cent.

The bid-to-cover ratios stood at 1.89 for the 91-day bill, 1.15 for the 182-day bill and 1.00 for the 364-day bill.

Of the Ksh30.62 billion accepted, Ksh23.08 billion came from competitive bids, while Ksh7.54 billion comprised non-competitive bids.

Interest rates remain stable

Interest rates recorded only marginal changes compared to the previous auction.

The average accepted rate on the 91-day bill declined slightly from 8.8250 per cent to 8.7986 per cent, while the 182-day bill eased marginally from 8.9711 per cent to 8.9695 per cent.

The 364-day bill was the only tenor to record an increase, rising from 8.9923 per cent to 9.0415 per cent.

At the accepted average rates, investors will pay about Ksh97.85 for every Ksh100 face value of the 91-day Treasury bill, Ksh95.72 for the 182-day bill and Ksh91.73 for the 364-day bill.

Funds to support government financing

The CBK said Ksh19.10 billion of the accepted amount will be used to refinance maturing Treasury bills through rollovers and redemptions.

The remaining Ksh11.52 billion will constitute net new borrowing to support government financing requirements.

The Central Bank noted that the actual amount realised from the auction will depend on the National Treasury’s immediate liquidity requirements for the week.

Treasury bills remain one of the government’s primary domestic borrowing instruments, allowing it to raise short-term financing from commercial banks, pension funds, insurance companies and retail investors.

The next Treasury bills auction, covering Issues 2692/091, 2666/182 and 2621/364 dated July 27, 2026, will close on Thursday, July 23, with results expected the same day. Non-competitive bids remain capped at Ksh50 million per investor account per tenor, except for state corporations, public universities and semi-autonomous government agencies.