Treasury Bill.
The Central Bank of Kenya (CBK) raised Sh43.69 billion in its latest Treasury bills auction, surpassing its Sh24 billion target by 82 percent, signaling strong investor appetite for government securities despite a slight uptick in interest rates.
According to the auction results released by CBK for the 91, 182, and 364-day Treasury bills dated June 2, 2025, total bids received amounted to Sh55.11 billion more than double the amount on offer.
The 364-day paper received the highest interest, attracting bids worth Sh26.13 billion, followed by the 91-day and 182-day papers with Sh19.20 billion and Sh9.77 billion, respectively.
Out of the total bids, CBK accepted Sh43.69 billion, with non-competitive bids accounting for Sh23.26 billion. The 364-day T-bill emerged as the most popular, securing Sh15.69 billion in accepted bids, followed by the 91-day (Sh19.20 billion) and 182-day (Sh8.81 billion) tenors.
The average interest rates slightly increased across all maturities. The 91-day bill was accepted at a weighted average rate of 8.3 percent, up from 8.3 percent in the previous auction.
The 182-day bill saw a marginal rise to 8.56 percent, while the 364-day paper remained steady at 10 percent .
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The bulk of the proceeds Sh29.98 billion will go toward rolling over maturing securities, while the balance of Sh13.71 billion will be used for new borrowing and net repayment purposes.
The bid-to-cover ratio a key measure of demand stood at 1.00 for the 91-day, 1.11 for the 182-day, and 1.67 for the 364-day, suggesting particularly high investor interest in longer-term government debt.
Meanwhile, CBK has announced its next T-bill auction for June 5, 2025, with another Sh24 billion on offer. Of this, Sh36.91 billion is expected to be used for redemptions, while Sh12.19 billion will be directed toward net repayment.
