Kenya Treasury Bills Draw Ksh55.5 Billion in Auction
Bidders placed Ksh55.5 billion in orders for short-term government debt, nearly double the Ksh28 billion offered. The Central Bank of Kenya confirmed strong demand across all three tenors.
Investors bid Ksh55.5 billion for Treasury bills issued on September 10, 2026. This volume represents 198.2 percent of the Ksh28 billion advertised by the government. The Central Bank of Kenya reported that demand outpaced supply by nearly a factor of two.
The auction covered three short-term securities. Interest rates declined slightly for each maturity compared to the previous issuance. The National Treasury accepted bids at lower yields despite the high level of investor participation.
Short-term bills show strong uptake
The 91-day bill attracted the most interest. Bidders offered Ksh29.58 billion against Ksh8 billion available. The government accepted Ksh29.39 billion at a rate of 8.767 percent. This rate marked a one-basis-point drop from the last auction.
Demand for the 182-day bill reached Ksh12.97 billion. The Treasury accepted Ksh11.31 billion at 8.930 percent. The 364-day bill saw bids of Ksh12.96 billion. Authorities accepted Ksh12.58 billion at a yield of 9.067 percent. All three rates were lower than their previous levels.
Bond switch and liquidity trends
A 10-year bond switch held on September 9 also saw strong participation. Bids totaled Ksh13.5 billion against Ksh10 billion offered. This resulted in a performance rate of 135.2 percent. The activity reflects increased liquidity in the domestic banking system.
Commercial banks held average excess reserves of Ksh21.3 billion. This amount is above the 3.25 percent cash reserve requirement. Interbank transactions averaged Ksh11.4 billion per day. This figure rose from Ksh9.6 billion in the prior week.
External yields rise amid domestic demand
Yields on Kenya’s international bonds increased during the week. The Central Bank reported an average rise of 25.10 basis points. Domestic investors continued to favor local government securities. The strong demand allowed the Treasury to fund its needs at lower rates.
The Kenya Shilling Overnight Interbank Average remained stable. The rate held at 8.75 percent for the week. Market conditions stayed consistent with recent trends. The data confirms sustained investor appetite for short-term Kenyan debt.
