The National Treasury’s Treasury bill auction attracted bids worth Ksh49.7 billion against an advertised amount of Ksh28 billion, reflecting strong investor demand for short-term government securities.

According to the Central Bank of Kenya (CBK) Weekly Bulletin released on July 10, 2026, the July 9, 2026 auction achieved a performance rate of 177.6 per cent, with demand remaining strong across the 91-day, 182-day, and 364-day Treasury bills.

The auction comes as investors continue to seek government securities amid stable money market conditions and a steady Kenya shilling.

“The Treasury bill auction of July 9 received bids totalling Ksh49.7 billion against an advertised amount of Ksh28.0 billion, representing a performance of 177.6 per cent. The interest rates on the 91-day and 364-day Treasury bills decreased. However, the interest rate on the 182-day Treasury bill increased marginally,” read the bulletin in part.

Treasury bill rates remain stable

The 182-day Treasury bill recorded a marginal increase to 8.971 per cent from 8.962 per cent, while the average rate on the 364-day Treasury bill edged down to 8.992 per cent from 8.995 per cent.

CBK said the money market remained liquid during the week ending July 9, 2026, with commercial banks’ excess reserves averaging Ksh30.4 billion above the 3.25 per cent cash reserve ratio requirement.

The Kenya Shilling Overnight Interbank Average (KESONIA) rate remained unchanged at 8.75 per cent.

The bulletin noted that the average number of interbank transactions declined to nine from 19 in the previous week, while the average value traded fell to Ksh4.2 billion from Ksh8.8 billion.

Stable shilling, stronger reserves

The Kenya shilling remained stable during the week, exchanging at Ksh129.22 against the US dollar on July 9, 2026, compared to Ksh129.30 on July 2, 2026.

Foreign exchange reserves increased to approximately Ksh1.83 trillion, equivalent to six months of import cover, exceeding the CBK’s statutory requirement of maintaining at least four months of import cover.

The Nairobi Securities Exchange also recorded mixed performance during the week. The NASI rose by 0.78 per cent, while the NSE 20 Share Index gained 0.09 per cent. The NSE 25 Share Index declined by 0.20 per cent.

Bond auction records strong demand

Demand for longer-term government securities also remained strong.

The Treasury bond auction held on July 8, 2026 attracted bids worth Ksh144.5 billion against an advertised amount of Ksh70 billion, representing a performance of 206.4 per cent.

The reopened 10-year, 20-year and 30-year Treasury bonds received the highest demand from investors.

CBK data also shows Treasury bonds accounted for 84.34 per cent of total government securities as of July 3, 2026, while Treasury bills accounted for 15.66 per cent. Gross domestic debt stood at Ksh7.33 trillion, reflecting the continued reliance on the domestic market to finance government borrowing.