Investors rush for 91-day Treasury bills as bids hit Ksh34.8B
By David Nthua, July 15, 2026Investors placed bids worth Ksh34,800,000,000 for Kenya’s 91-day Treasury bills, more than four times the Ksh8 billion offered by the government, signalling strong demand for short-term government debt.
Central Bank of Kenya auction results published on Monday, July 13, 2026, show the 91-day paper recorded a performance rate of 434.98 per cent, making it the most sought-after option in the latest Treasury bill sale.
CBK accepted Ksh15.61 billion from the 91-day bids, almost double the amount initially offered. The accepted average interest rate stood at 8.825 per cent, marginally lower than the previous auction’s 8.8347 per cent.
Treasury bills allow investors to lend money to the government for a fixed period. The 91-day bill matures after about three months, making it attractive to investors who want to earn interest without tying up their money for longer periods.
At the accepted average rate, an investor buying a 91-day bill with a face value of Ksh100 would pay approximately Ksh97.85 and receive Ksh100 when it matures.
Investors avoid longer-term Treasury bills
Demand weakened as the maturity period increased.
The government offered Ksh10 billion in 182-day Treasury bills but received bids worth Ksh8.88 billion, representing a subscription rate of 88.83 per cent. CBK accepted Ksh8.88 billion at an average interest rate of 8.9711 per cent.
The 364-day bill attracted only Ksh6.04 billion against the Ksh10 billion offered, translating to a performance rate of 60.38 per cent. CBK accepted Ksh6.04 billion at an average rate of 8.9923 per cent.
The pattern shows investors preferred lending to the government for three months rather than committing their funds for six months or one year.
This may indicate that investors want to remain liquid and retain the ability to reinvest their money should interest rates or economic conditions change.
A similar preference for short-dated Kenyan government securities has previously been associated with investor caution towards longer-term debt.
CBK accepts Ksh30,000,000,000
Across the three Treasury bill categories, the government offered Ksh28 billion and received bids worth Ksh49.72 billion, giving the auction an overall performance rate of 177.57 per cent.
CBK accepted Ksh30.53 billion, comprising Ksh26.6 billion in competitive bids and Ksh3.92 billion in non-competitive bids.
About Ksh28.48 billion of the accepted amount will be used to repay Treasury bills that have matured. This leaves the government with approximately Ksh2.4 billion in net new borrowing from the auction.
“The actual amount to be realised from the auction will be subject to National Treasury’s immediate liquidity requirements for the week,” CBK said.
The bank added that it reserves the right to accept or reject bids, either partly or fully, depending on the government’s financing needs.
The results show that the government can still attract strong domestic funding, but demand remains concentrated in short-term securities rather than longer-dated Treasury bills.