Short-term government securities showed a sign of recovery during the week ending July 4, 2025, after investors in the domestic market submitted bids amounting to Ksh21.8 billion to try and recover from the previous week’s dip of Ksh14.5 billion.  

Although still an underperformance, compared to the advertised amount of Ksh24 billion, this might have been a good indicator with regard to the private sector, which has, over time, grappled with access to loans, particularly from commercial banks, which are the largest lenders to the government.  

Attracting bids 

During the week, the 91-day treasury bills recorded a sluggish growth, attracting bids amounting to Ksh2.69 billion against the advertised amount of Ksh4 billion at the rate of 8.15 per cent, which marginally increased from 8.14 per cent in the previous week.

This new amount is up from the Ksh1.45 billion during the week that ended June 26, 2025, with the government accepting bids amounting to Ksh2.688 billion, with the maturities set at Ksh11.35 billion.   

The underperformance trend was also recorded in the 364-day T-bills, which attracted bids totalling Ksh7.955 billion against the advertised Ksh10 billion at the rate of 9.7 per cent.  

This is a further dip from the Ksh11.839 billion, which had fallen from the Ksh26.13 billion that had been recorded in the week ending May 29, 2025. 

Out of the new bids, the government accepted a total of Ksh7.95 billion, with the maturities set at Ksh6.5 billion, an indication that the majority of the bids met the requirements by the Central Bank of Kenya (CBK) or the notable appetite by the government to access the local loans.  

Conversely, the 182-day T-bills recorded an impressive rebound after attracting bids totalling Ksh11.174 billion, slightly above the advertised Ksh10 billion at the rate of 8.45 per cent. 

This was up from the Ksh1.2 billion recorded in the previous week at the rate of 8.46 per cent, with CBK setting up maturities at Ksh6.32 billion.  

“The Treasury bill auction of July 3 received bids totalling Ksh21.8 billion against an advertised amount of Ksh24.0 billion, representing a performance of 90.9 per cent. Interest rate on the 91-day, 182-day and 364-day Treasury bills remained stable,” CBK said in its weekly bulletin.  

At the equity markets, the NASI, NSE 25 and NSE 20 share price indices increased by 6.8 per cent, 6.4 per cent and 5.6 per cent, respectively, during the week ending July 3, 2025.  

Market capitalisation reached Ksh2.52 trillion, up from Ksh2.36 trillion recorded on June 26, 2025, while equity turnover amounted to Ksh3.8 billion, up from the Ksh1.3 billion recorded on June 26, 2025, with the total shares traded totalling Ksh151.3 billion.  

“Market capitalisation, Equity turnover and total shares traded, also increased by 6.8 per cent, 189.3 per cent and 87.6 per cent, respectively,” the bulletin reads in part.