Investors submitted KSh 49.8 billion in bids for the Central Bank of Kenya’s (CBK) 91-day Treasury bill, more than six times the KSh 8 billion the government had offered in its latest auction.
Results released by CBK on October 15 show that the short-term security attracted the highest demand among the three Treasury bills offered, with investors placing bids worth KSh 49.80 billion against the amount available.
The strong demand was reflected in a performance rate of 622.46 per cent, meaning investors submitted bids equivalent to more than six times the amount offered.
CBK accepted KSh34.24 billion from the 91-day auction, while the bid-to-cover ratio stood at 1.45. The ratio compares the amount accepted with the amount offered by investors and indicates the level of demand relative to the funds raised.
The latest results also showed that investors submitted a combined KSh68.50 billion in bids for the 91-day, 182-day and 364-day Treasury bills against a total offer of KSh28 billion.
CBK accepted KSh52.32 billion across the three securities, exceeding the original offer by KSh24.32 billion.
91-Day Treasury Bill Attracts Highest Demand
The 91-day Treasury bill attracted the largest share of investor bids, with KSh49.80 billion submitted against the KSh8 billion target.
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Of the amount accepted, KSh26.44 billion came from competitive bids, while KSh7.80 billion came from non-competitive bids.
The accepted bids carried a weighted average interest rate of 8.75 per cent, slightly lower than the 8.7615 per cent recorded in the previous auction.
The reduction suggests that the average rate accepted by CBK for the shortest-dated security edged down despite the strong demand from investors.
Treasury bills are short-term loans that investors give the government through CBK, and investors buy them at a discount and receive the full amount when the bills mature, earning the difference as profit.
How the 182-Day and 364-Day Treasury Bills Performed
The 182-day Treasury bill received KSh12.06 billion in bids against an offer of KSh10 billion, representing a performance rate of 120.58 per cent.
CBK accepted KSh11.48 billion from the auction, comprising KSh5.75 billion in competitive bids and KSh5.73 billion in non-competitive bids.
The accepted bids recorded a weighted average interest rate of 8.86 per cent, down from 8.8744 per cent in the previous auction.
Meanwhile, the 364-day Treasury bill attracted KSh6.64 billion in bids against an offer of KSh10 billion, making it the only of the three securities to receive fewer bids than the amount advertised.
Its performance rate stood at 66.43 per cent, with CBK accepting KSh6.59 billion.
The accepted bids carried a weighted average interest rate of 9.0383 per cent, slightly higher than the 9.0352 per cent recorded in the previous auction.
The results indicate that investors showed the strongest demand for the shortest-dated security, while interest in the one-year bill fell below the amount CBK had offered.
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CBK Accepts KSh52.3 Billion Across Three Securities
Across the three Treasury bills, CBK accepted KSh52.32 billion from the KSh68.50 billion in bids received.
The accepted amount comprised KSh34.20 billion in competitive bids and KSh18.12 billion in non-competitive bids.
Competitive bids let investors specify the interest rate they want, while non-competitive bids earn the average rate CBK accepts in the auction, subject to the set limits.
The amount accepted was higher than the KSh28 billion initially offered, though CBK said the actual amount realised from the auction would depend on the National Treasury’s immediate liquidity needs for the week.
The bank also retains the right to accept or reject bids, either partly or in full, and may allocate securities proportionately where several successful bidders quote the same rate.
Next Treasury Bills Auction Scheduled for October 22
CBK has scheduled the next Treasury bills auction for October 22, 2026, covering the 91-day, 182-day and 364-day securities.
The next auction will offer KSh8 billion in 91-day Treasury bills, KSh10 billion in 182-day bills and KSh10 billion in 364-day bills, bringing the total advertised amount to KSh28 billion.
Investors are required to submit their bids electronically through DhowCSD or Treasury Mobile Direct by 2 p.m. on Thursday, October 22.
Successful bidders must pay via electronic transfer using the Real Time Gross Settlement (RTGS) system. CBK has set the payment deadline for Monday, October 26, at 2 p.m.
Non-competitive bids are subject to a maximum of KSh50 million per investor account for each tenor, except for state corporations, public universities and semi-autonomous government agencies, which are exempt from that limit.
According to CBK, individual bids must have a minimum face value of KSh50,000 for non-competitive bids and KSh2 million for competitive bids. Only investors with active Central Securities Depository (CSD) accounts are eligible to participate.
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