The Central Bank of Kenya (CBK) accepted Sh42.69 billion from investors in its latest Treasury bills auction after bids worth Sh42.72 billion were submitted for securities worth Sh28 billion, with the 91-day bill attracting the highest demand.
The auction recorded an overall performance rate of 152.57 percent, reflecting strong investor interest across the three Treasury bill categories offered by CBK.
The 91-day Treasury bill led demand after investors submitted Sh23.25 billion against the Sh8 billion on offer. CBK accepted Sh23.23 billion, giving the short-term security a performance rate of 290.57 percent.
The 182-day Treasury bill attracted Sh10.05 billion in bids against an offer of Sh10 billion. CBK accepted the entire amount, resulting in a performance rate of 100.46 percent.
For the 364-day Treasury bill, investors submitted Sh9.43 billion against the Sh10 billion offered. CBK accepted Sh9.42 billion, putting the performance rate for the one-year security at 94.28 percent.
The auction results released by CBK on September 17 showed that Sh23.53 billion of the accepted amount came through competitive bids, while Sh19.16 billion was raised through non-competitive bids.
Treasury bills are short-term government securities offered with maturities of 91, 182 and 364 days. CBK conducts the auctions every week, giving the government a way to raise short-term funds and manage its cash needs.
The latest auction took place with the Central Bank Rate at 8.75 percent. CBK's latest published figures also showed that inflation stood at 6.6 percent in August 2026, while the rate on the 91-day Treasury bill was about 8.784 percent.
The results also showed the level of refinancing that the government faced during the auction period, with Treasury bills worth Sh48.45 billion due for redemption.
Of this amount, Sh24.10 billion was for the 91-day bill, Sh10.20 billion for the 182-day bill and Sh14.15 billion for the 364-day bill.
After taking account of redemptions, the 91-day bill recorded new borrowing or net repayment of Sh870.44 million, while the 182-day bill posted Sh153.37 million. The 364-day bill generated Sh4.73 billion.
The market weighted average interest rate stood at 8.7844 percent for the 91-day bill, 8.9099 percent for the 182-day bill and 9.0602 percent for the 364-day bill.
The weighted average rates on accepted bids were slightly different, coming in at 8.7837 percent for the 91-day security, 8.9099 percent for the 182-day bill and 9.0566 percent for the 364-day bill.
Compared with the previous auction, the rate on the 91-day Treasury bill rose by 0.0163 percentage points from 8.7674 percent. The 182-day bill rate fell by 0.0197 percentage points from 8.9296 percent, while the 364-day rate declined by 0.0099 percentage points from 9.0665 percent.
The securities issued in the latest auction are scheduled for redemption on December 21, 2026, for the 91-day bill, March 22, 2027, for the 182-day bill and September 20, 2027, for the 364-day bill.
The auction comes as the government seeks to manage the cost of domestic borrowing and reduce refinancing risks. The 2026 Medium-Term Debt Management Strategy states that the government plans to obtain 84 percent of its gross borrowing from domestic sources over the medium term.
The strategy also provides for a gradual reduction in the stock of Treasury bills while increasing the maturity of domestic debt through medium- and long-term securities.
CBK has scheduled the next Treasury bills auction for September 24, 2026, when it will again offer securities worth Sh28 billion across the three maturities.
The 91-day Treasury bill will have an offer of Sh8 billion, while both the 182-day and 364-day bills will have offers of Sh10 billion each.
CBK said investors must submit their bids electronically through DhowCSD or Treasury Mobile Direct by 2pm on September 24. Payments for successful bids must reach the bank through the Real Time Gross Settlement System (RTGS) by 2pm on September 28.
“Non-competitive bids are subject to a maximum of Shs50 Million per investor account per tenor and are issued at the weighted average of accepted bids. This does not apply to State Corporations, public universities and semi-autonomous government agencies (SAGAs).”