Central Bank of Kenya Governor Kamau Thugge. Photo | Kenya Banking Insights.
The Central Bank of Kenya (CBK) raised Sh42.77 billion from the latest auction of 91-day, 182-day, and 364-day Treasury bills, against an initial offer of Sh24 billion, signaling continued investor confidence in government securities.
According to CBK’s auction results dated April 28, 2025, the 91-day paper attracted the highest subscription rate, receiving bids worth Sh16.06 billion against an offer of Sh4 billion an oversubscription rate of 401.41 percent.
The government accepted Sh16.05 billion from these bids, mainly non-competitive ones totaling Sh15.92 billion.
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The 182-day and 364-day papers also recorded strong interest, with performance rates of 152.20 percent and 115.72 percent, respectively.
Bids received for the 182-day paper amounted to Sh15.21 billion while the 364-day received Sh11.57 billion. CBK accepted Sh15.15 billion and Sh11.56 billion for the two tenors, respectively.
The funds raised will primarily be used to roll over existing debt, with Sh39.36 billion earmarked for redemptions and Sh3.41 billion allocated toward net new borrowing.
Interest rates continued to rise across all tenors, with the 91-day bill fetching a weighted average interest rate of 8.4434 percent, up from 8.4699 percent in the last auction.
The 182,day and 364,day bills recorded average rates of 8.6190 percent and 10.0208 percent respectively. The market weighted average rates were slightly higher, reaching up to 10.0288 percent for the 364,day paper.
The CBK has announced the next auction for the week ending May 5, 2025, with a similar total offer of Sh24 billion. Results will be released on April 30, 2025.
Upcoming redemptions total Sh20.79 billion, and net new borrowing is projected at Sh3.21 billion.
The steady rise in interest rates coupled with strong demand suggests investors are seeking short-term returns amid macroeconomic uncertainty.
