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Central Bank of Kenya Raises KSh 34.4 Bn for Budget Spending in June

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CBK headquarters in Nairobi
CBK HEADQUARTERS IN NAIROBI
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Central Bank of Kenya(CBK) received bids worth KSh 34.4 billion from the sale of a 15-year Treasury Bond and a 25-year Treasury Bond, during the June 3rd Auction, an undersubscription of 85.97%. This is out of KSh 40 billion that the state fiscal agent sought for budget spending in June 2026.

The 15-year Treasury Bond which matures on 5th February 2035) has a coupon rate of 12.756% per year, paid in August & February each year with a sale window of 29th May to 3rd June 2026 and an auction date of 3rd June 2026.

According to the Central Bank of Kenya prospectus, the re-opened 25-year Treasury Bond has 17.1 years to maturity on 25th May 2043. The debt instrument has a Coupon Rate: 13.40% per year, paid out in June & December each year.

The 15-year Treasury Bond attracted bids worth KSh 20.2 Billion of which 18.7 billion was in the form of competitive bids while KSh 1.36 billion was made up of non-competitive bids

The 25-Year Treasury Bond attracted bids worth KSh 14.23 billion, an undersubscription of 35.58% with the Central Bank of Kenya accepting KSh 14.22 billion.

Central Bank of Kenya Treasury Bills Auction

At the weekly Treasury Bills auction, the Central Bank of Kenya received bids worth KSh 54.57 Billion out of the KSh 24 billion offered, an oversubscription of 227.42%, with the state fiscal agent accepting KSh 54.55 billion.

The 91-day Treasury Bills was the most attractive received bids worth KSh 32.8 billion out of the KSh 4 billion offered, an oversubscription of 820.68%. The 364-day treasury bills recorded a subscription rate of 152.26% and bids worth KSh 15.2 billion with Central Bank of Kenya accepting KSh 15.9 billion.

The 182-day Treasury Bills was the least attractive with bids worth KSh 6.5 billon out of the KSh 10 billion offered, a performance rate of 65.26%

ALSO READ: Central Bank of Kenya Seeking KSh 40Bn for Budgetary Support in June

Written by
JACKSON OKOTH

Jackson Okoth writes for Business Today. He specializes in capital and money markets, energy sector, manufacturing, real estate, co-operatives sector, technology and agriculture. He can be reached on email at editor [at] businesstoday.co.ke

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