The government raised Ksh35.74 billion in the latest Treasury bills auction after attracting bids worth Ksh48.98 billion against an offer of Ksh24 billion, according to results released by the Central Bank of Kenya (CBK) on June 18, 2026.

The auction covered the 91-day, 182-day and 364-day Treasury bills dated June 22, 2026. Overall subscription stood at 204.10 per cent, reflecting strong investor demand for government securities.

The 91-day Treasury bill attracted the highest interest from investors, receiving bids worth Ksh36.85 billion against an offer of Ksh4 billion. The performance rate stood at 921.17 per cent, with CBK accepting Ksh23.62 billion.

For the 182-day Treasury bill, investors submitted bids worth Ksh3.22 billion against Ksh10 billion on offer. The Central Bank accepted Ksh3.21 billion.

The 364-day Treasury bill received Ksh8.92 billion in bids against a Ksh10 billion offer, with Ksh8.91 billion accepted.

Interest rates edge higher

The weighted average interest rate of accepted bids increased across all three tenors compared to the previous auction.

The 91-day Treasury bill recorded an average accepted rate of 8.8206 per cent, up from 8.7067 per cent in the previous auction. The 182-day paper rose to 8.7782 per cent from 8.6006 per cent, while the 364-day bill increased to 8.9746 per cent from 8.8715 per cent.

Competitive bids accounted for Ksh30.17 billion of the accepted amount, while non-competitive bids totalled Ksh5.58 billion.

According to the auction results, the market weighted average interest rates stood at 8.8880 per cent for the 91-day bill, 8.7806 per cent for the 182-day bill and 8.9748 per cent for the 364-day bill.

The bid-to-cover ratio was 1.56 for the 91-day Treasury bill and 1.00 for both the 182-day and 364-day papers.

Funds to support redemptions

Of the Ksh35.74 billion accepted, Ksh34.45 billion will be used for rollover and redemption obligations, while the balance will support government borrowing requirements.

The Treasury bill auction follows a period of varying demand in the domestic debt market. The latest results indicate increased investor participation in short-term government instruments, particularly the 91-day paper.

CBK has announced the next Treasury bills auction comprising the 91-day, 182-day and 364-day tenors dated June 29, 2026. Bids will close on June 25, 2026, with successful investors required to make payments by June 29.

Non-competitive bids remain capped at Ksh50 million per investor account per tenor, except for state corporations, public universities and semi-autonomous government agencies.