The government successfully raised Ksh35.74 billion in the recent Treasury bills auction, attracting bids of Ksh48.98 billion against an offer of Ksh24 billion, as reported by the Central Bank of Kenya (CBK) on June 18, 2026.
This auction featured 91-day, 182-day, and 364-day Treasury bills dated June 22, 2026, showcasing a strong overall subscription rate of 204.10%, highlighting robust investor interest in government securities.
The 91-day Treasury bill drew the most attention, with bids totaling Ksh36.85 billion against an offer of Ksh4 billion. The performance rate reached an impressive 921.17%, leading CBK to accept Ksh23.62 billion.
For the 182-day bill, investors submitted Ksh3.22 billion in bids against a Ksh10 billion offer, with Ksh3.21 billion accepted. The 364-day bill saw bids of Ksh8.92 billion against a Ksh10 billion offer, with Ksh8.91 billion accepted.
Interest rates on accepted bids increased across all three tenors compared to the previous auction. The 91-day bill’s average accepted rate rose to 8.8206% from 8.7067%, the 182-day bill increased to 8.7782% from 8.6006%, and the 364-day bill went up to 8.9746% from 8.8715%.
Competitive bids made up Ksh30.17 billion of the accepted amount, while non-competitive bids totaled Ksh5.58 billion. The market’s weighted average interest rates are 8.8880% for the 91-day bill, 8.7806% for the 182-day bill, and 8.9748% for the 364-day bill. The bid-to-cover ratio stood at 1.56 for the 91-day Treasury bill, and 1.00 for both the 182-day and 364-day papers.
Out of the Ksh35.74 billion accepted, Ksh34.45 billion will be allocated for rollover and redemption obligations, with the remainder supporting government borrowing needs.
This auction reflects a shift in demand within the domestic debt market, particularly favoring short-term government instruments like the 91-day bill.
Looking ahead, CBK has scheduled the next Treasury bills auction for June 29, 2026, featuring the same tenors. Bids will close on June 25, 2026, with successful investors required to make payments by June 29. Non-competitive bids remain capped at Ksh50 million per investor account per tenor, except for state corporations, public universities, and semi-autonomous government agencies.
