Treasury bills auction undersubscribed as CBK accepts Ksh18.2B in bids
By Faith Lagat, January 23, 2026The Central Bank of Kenya (CBK) Treasury Bills auction for the 91-day, 182-day and 364-day tenors closed undersubscribed, with the regulator accepting Ksh18.21 billion out of the Ksh24 billion on offer.
According to official results released by CBK on January 22, 2026, the auction covered issues 2666/091, 2640/182 and 2595/364 dated January 26, 2026, and attracted total bids worth Ksh18.35 billion, translating to an overall performance rate of 76.46 percent.
Auction outcome and investor demand
The 91-day Treasury Bill (ISIN KE9800001092), due on April 27, 2026, recorded the weakest demand. Bids received totalled Ksh1.37 billion, against an offer of Ksh4 billion, representing a performance rate of 34.34 per cent. CBK accepted Ksh1.37 billion for this tenor.
The 182-day paper (ISIN KE9800001100), due on July 27, 2026, attracted bids worth Ksh8.83 billion compared to the Ksh10 billion offered, achieving a performance rate of 88.25 percent. The accepted amount stood at Ksh8.80 billion.
For the 364-day Treasury Bill (ISIN KE9800001217), due on January 25, 2027, bids totalled Ksh8.15 billion against an offer of Ksh10 billion, translating to a performance rate of 81.51 percent. CBK accepted Ksh8.04 billion for the longest tenor.
The bid-to-cover ratio stood at 1.00 for both the 91-day and 182-day tenors, and 1.01 for the 364-day paper, resulting in an overall bid-to-cover ratio of 1.01.
Interest rates and bid composition
Out of the total Ksh18.21 billion accepted, competitive bids accounted for Ksh10.07 billion, while non-competitive bids totalled Ksh8.14 billion. CBK noted that non-competitive bids are capped at Ksh50 million per investor account per tenor, with exemptions for state corporations, public universities and semi-autonomous government agencies, and are issued at the weighted average rate of accepted bids.
“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 Kshs 50,000.00 for Non-Competitive and 2,000,000.00 for Competitive. Only investors with active CSD accounts are eligible.”
The weighted average interest rates of accepted bids were 7.7274 per cent for the 91-day bill, 7.7934 per cent for the 182-day bill, and 9.2002 per cent for the 364-day bill. Compared to the previous auction, the 91-day rate rose slightly, while the 182-day and 364-day rates declined marginally.
Market weighted average rates stood at 7.8569 percent, 7.7972 percent and 9.2282 percent for the respective tenors, with corresponding prices per Sh100 at 98.1099, 96.2593 and 91.5961.
Redemptions and next auction
The auction involved substantial rollovers, with total redemptions amounting to Ksh29.97 billion across the three tenors. CBK noted that the actual amount realised is subject to the National Treasury’s immediate liquidity requirements and that bids may be allotted on a pro-rata basis.
The next Treasury Bills auction, covering issues 2667/091, 2641/182 and 2596/364 dated February 2, 2026, will use the current auction’s results as benchmark rates.