The government’s latest Treasury bond auction has attracted more than double the amount it offered investors, with the Central Bank of Kenya (CBK) receiving bids worth Sh366.22 billion against securities worth Sh150 billion. The strong showing points to continued investor interest in government debt, even as returns differed across the three bonds offered in the auction.
The auction involved three Treasury bonds with different maturities, giving investors an opportunity to choose between shorter and longer-term government securities. According to results released by the CBK Financial Markets Directorate on August 12, 2026, the securities attracted bids of Sh159.27 billion, Sh92.85 billion and Sh112.64 billion respectively.
The total amount submitted was more than twice the value of bonds on offer, with the auction recording an overall performance rate of 103.27 per cent.
The market weighted average rates for the three securities stood at 12.365 per cent, 12.8250 per cent and 13.3738 per cent respectively.
The weighted average rates on accepted bids were lower for the first two securities at 11.1960 per cent and 12.6877 per cent, while the third recorded an accepted rate of 13.3738 per cent.
The auction results also showed the accepted price levels for the three securities at 103.8778, 104.4001 and 103.9948 respectively.
The coupon rates listed for the securities were 11.7500 per cent and 11.4679 per cent, according to the CBK data signed by David Lea, Director of Financial Markets.
The strong response gave the government room to select bids according to the rates offered by investors and the prevailing conditions in the domestic debt market. The level of interest also showed that investors remained willing to place funds in Treasury securities despite differences in the returns offered across the three bonds.
The latest auction is part of the CBK’s regular programme for issuing government securities. Treasury bonds provide the government with medium- and long-term financing while offering investors an avenue to invest in government debt.
The CBK also announced forthcoming Treasury bond issues for September, pointing to continued activity in the government securities market in the coming month.
The bank said details of the upcoming bonds, including their tenors, auction dates and coupon rates, would be provided in the prospectus.
The latest results come as investors weigh the returns available from government securities against other investment opportunities. The high level of bids compared with the amount offered shows that Treasury bonds continue to attract strong interest in the domestic market.