The Central Bank of Kenya (CBK) raised Sh37.41 billion from the latest auction of 91-day, 182-day, and 364-day Treasury bills.
According to auction results released on May 19, the government had offered a total of Sh24 billion across the three tenors, but bids received soared to Sh43.13 billion representing a bid-to-cover ratio of 1.15.
The 364-day paper attracted the highest interest, receiving bids worth Sh29.68 billion against an offer of Sh10 billion.
CBK accepted Sh24.02 billion, accounting for nearly two-thirds of the total funds raised.
The performance rate for the one-year bill stood at a robust 296.81 percent, with a weighted average interest rate of 10.0243 percent up from 10.0098 percent in the previous auction.
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The 91-day and 182-day tenors raised Sh8.07 billion and Sh5.32 billion respectively. The 91-day paper registered a performance rate of 202.22 percent, with a weighted average interest rate of 8.3699 percent.
Meanwhile, the 182-day bill was slightly undersubscribed at 53.56 percent, with an interest rate of 8.5831 percent.
Of the total amount accepted, Sh18.19 billion came from competitive bids while Sh19.21 billion was from non-competitive bids.
The bulk of the funds Sh35.39 billion will go towards rolling over maturing securities, with only Sh6.04 billion classified as new borrowing.
In comparison to the previous auction, average accepted interest rates edged up across all tenors, the 91-day rate increased by 0.0116 percent, the 182-day by 0.0179 percent, and the 364-day by 0.0076 percent.
CBK has announced the next Treasury bills auction, offering a similar total of Sh24 billion on May 22.
Upcoming redemptions are projected at Sh23.44 billion, while net new borrowing is targeted at Sh555 million.
