CBK (Central Bank of Kenya) accepted bids worth KSh 36.59, falling below the KSh 50 Billion target it was seeking for budget spending in May, just weeks before the 2026/27 budget. CBK will use proceeds worth KSh 26.34 Billion from the May Treasury Bond auction as Net Borrowing.
This was an undersubscription of 94.32% with the state fiscal agent receiving bids worth KSh 47.16 Billion. Investors showed their preference for the re-opened 20-year Treasury Bond, which was offering a coupon rate of 13.7421% with the state fiscal agent accepting bids worth KSh 22.17 Billion.
The re-opened 15-year Treasury Bond, first sold in 2019 and has 8.3 years to mature saw Central Bank accepted bids worth KSh 14.43 Billion after offering investors a coupon rate of 12.9708%.
CBK Data on Treasury Bond Auctions in 2025/26
Available figures indicate that in the 2025/26 financial year, the state fiscal agent has so far offered T-Bonds worth KSh 830 Billion, which attracted bids worth KSh 1.763 Trillion with CBK accepting KSh 1.018 Trillion. The state fiscal agent has so far borrowed KSh 831 from the domestic market, below a target of KSh 885.9 Billion.
In this week’s Treasury Bills Auction, Central Bank of Kenya accepted KSh 26.1 Billion out of KSh 24 Billion offered, an oversubscription of 125.19%.
The 91-day Treasury Bills was the most attractive debt instrument receiving bids worth KSh 15.9 Billion out of the KSh 4 Billion, a performance rate of 396.64%, with the CBK accepting bids worth KSh 11.9 Billion. Investors were offered an interest rate of 8.3864% on this debt instrument.
The 182-day Treasury Bill received bids worth KSh 8.4 Billion out of KSh 10 Billion, a performance rate of 83.90%, with the CBK accepting the entire amount. Investors were offered a return of 8.2113%.
The 364-day Treasury Bills received bids worth KSh 5.78Billion out of KSh 1o Billion with the CBK accepting KSh 5.7 Billion, with investors being offered an interest rate of 8.5881% for this instrument.
ALSO READ: CBK Seeks KSh 50 Bn for Budgetary Support Through Two Re-Opened Bonds
Leave a comment