The Central Bank of Kenya (CBK) successfully accepted Treasury bills totaling Ksh 44.32 billion in its latest auction, significantly surpassing the initial offering of Ksh 28 billion across three maturities.
This auction featured 91-day, 182-day, and 364-day Treasury bills, demonstrating robust investor demand for these government securities.
According to the results released by CBK on their X handle on Thursday, August 28, 2026, the 91-day Treasury bill garnered the highest accepted bids at Ksh 23.11 billion against an offer of Ksh 8 billion, with a weighted average interest rate of 8.7692 percent.
The 182-day Treasury bill, which had an offer of Ksh 10 billion, recorded accepted bids worth Ksh 15.05 billion, reflecting a weighted average interest rate of 8.9400 percent.
Additionally, the 364-day Treasury bill attracted accepted bids totaling Ksh 6.16 billion against the Ksh 10 billion offered, with this one-year paper achieving the highest weighted average interest rate of 9.0323 percent.
These auction results highlight a strong and persistent investor appetite for government securities, particularly in the shorter-dated Treasury bills.
Overall, CBK accepted Ksh 44.32 billion, significantly exceeding the Ksh 28 billion initially offered. The strong subscription for the 91-day and 182-day securities indicates that investors are eager to invest in government debt, even with shorter investment periods.
Treasury bills serve as crucial domestic borrowing instruments for the government, enabling it to finance operations and manage short-term cash flow needs.
The interest rates observed in this latest auction reflect the current cost of short-term government borrowing, with yields rising as the maturity period extends.
Looking ahead, CBK has scheduled the next Treasury bills auction for September 7, 2026.
This upcoming auction will include Issue Nos. 2698/091, 2672/182, and 2627/364, covering 91-day, 182-day, and 364-day Treasury bills, respectively.
We will closely monitor the continued demand for these securities as the government aims to secure domestic financing while effectively managing borrowing costs and addressing the nation’s debt obligations.
