Treasury Bill.
The Central Bank of Kenya (CBK) raised a total of Sh50.71 billion from its latest Treasury bills auction, surpassing its target of Sh24 billion, as demand from investors remained robust across all tenors.
Treasury bills are a secure, short-term investment, offering you returns after a relatively short commitment of funds
According to the auction results dated May 12, 2025, bids worth Sh52.67 billion were received for the 91-day, 182-day, and 364-day Treasury bills, against the Sh24 billion on offer.
The CBK accepted Sh50.71 billion, resulting in a performance rate of 219.45 percent.
Strongest demand for 364-day T-bill
The 364-day paper attracted the highest investor interest, receiving bids amounting to Sh21.5 billion against an offer of Sh10 billion, representing a 215.2 percent performance rate.
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CBK accepted Sh19.64 billion of these bids, at a weighted average interest rate of 10.0089 percent.
The 182-day T-bill also saw heightened demand, receiving Sh20.89 billion in bids, of which Sh20.78 billion was accepted. It was priced at a weighted average rate of 8.6010 percent.
Meanwhile, the 91-day paper drew bids worth Sh10.34 billion for an offer of Sh4 billion. CBK accepted Sh10.29 billion at a weighted average rate of 8.3815 percent.
The 91-day T-bill continues to be popular with investors seeking short-term returns amid market uncertainty.
Majority of funds go to debt rollovers
Out of the total Sh50.71 billion raised, a significant portion Sh49.68 billion will go toward rolling over maturing debt, while Sh1.03 billion will fund net new borrowing.
This reflects the government’s ongoing strategy to manage its short-term obligations without significantly increasing overall debt levels.
Interest rates remain largely stable
The average interest rates for the accepted bids rose only marginally compared to the previous auction.
The 91-day rate edged up by 0.0243 percentage points to 8.3815 percent, while the 182-day and 364-day tenors saw slight dips, indicating relative stability in the short-term interest rate environment. Next auction scheduled for May 15
CBK has announced the next auction for Treasury bills will be held on May 15, targeting the same Sh24 billion.
Redemptions are expected to total Sh35.4 billion, meaning the government will once again seek to roll over a substantial portion of maturing debt.
