CBK accepted KSh 33.35Bbillion out of KSh 41.72 billion in bids in the latest Treasury Bills auction.
All three tenors were oversubscribed, with demand strongest in the 91-day at 221.75% as accepted rates fell across all maturities.
CBK raised KSh 16,55 billion from sale of the 91-day treasury bills, offering a return of 8,7781%, It accepted bids worth KSh 10,26 billion at a return of 8.8949% and KSh 6,54 billion from the auction of the 364-day debt instrument while offering bidders a return of 9.0431%, a decline of 1.35basis points.
The auction resulted in net borrowing of KSh 3,80 billion from the local money market by the CBK this week.
Since the fiscal year begun, the CBK has conducted 11 weekly Treasury Bills auctions between July 1st and September 17th 2026.
Figures indicate that out of the weekly Treasury Bills auctions, the CBK has borrowed over KSh 80 billion in new debt while the rest has been used to clear last fiscal year’s bills.
Demand at the treasury bills auctions has been high, at between 150 and 200% every week since the middle of August 2026.
Last week, the CBK accepted KSh42.6Billion out of KSh42.7Billion that investors submitted as bids at the weekly Treasury Bills Auction. This is an indication of the Government’s growing appetite for cash from the domestic money market to service its debt obligations that are falling due as well as finance its short-term liquidity requirements.
This pressure is seen as the CBK floats the third tranche of Treasury Bonds, in the month of September and whose auction is 5th October 2026, again to raise KSh 50 billion to finance the 2026/27 budget. Investors in the government securities market has, meanwhile responding to this growing appetite by asking for higher returns and heavily subscribing to the CBK offers.
At last week’s Treasury Bills Auction, the 91-day short-term instrument remained the most attractive, with the state fiscal agent accepting KSh 23.23 billion and offering bidders a return of 8.7837%.
The 182-day Treasury Bills auction pulled in KSh 10.05 billion out of the KSh 10 billion offered with a return of 8.9099%.
The one-year debt instrument recorded a slight undersubscription, with the CBK collecting KSh 9.42 billion out of KSh10billion on offer, as it rejected the rest.
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