ANALYSIS BUSINESS

CBK Records Surge in Bids At Weekly Treasury Bills Auction

JACKSON OKOTHOct 9, 20261 Mins read609

CBK.

CBK(Central Bank of Kenya) recorded a burst in demand at the weekly Treasury Bills Auction as investors chased higher returns in Government paper, as the Nairobi Securities Exchange(NSE) remains in a bearish mood.

Data from CBK shows that the Treasury Bills Auction of October 8, received bids totalling KSh75.4 billion against an advertised amount of KSh 28.0 billion, representing a performance of 269.3%.

CBK Auction Results for 8th October

The most attractive instrument was the 91-day Treasury Bill, which received bids worth KSh 50.2 billion, the highest amount on record since 2017, against an amount offered of KSh 8 billion. The state fiscal agent accepted KSh 20.4 billion, more than twice the amount it was seeking. The average interest rate for the 91-day treasury bill stood at 8.762% at this auction.

The 182-day Treasury Bill received bids worth 15.5 billion against KSh 10 billion offered with the state fiscal agent accepting KSh 15.4 billion and offering bidders a return of 8.874%.

The 364-day Treasury Bill was the least attractive, pulling in KSh 9.6 billion worth of bids against KSh 10 billion offered, with the CBK accepting the entire amount. Successful bidders were offered a return of 9.035% for the one-year Treasury Bill.

In the Treasury Bond Switch Auction of October 5th, the 15-year treasury switch bond received bids totalling KSh 9.1 billion against an advertised amount of KSh 10.0 billion, representing a performance of 90.8%.

Data from CBK also shows that it has floated a total of six re-opened Treasury Bonds in the month of September alone, seeking a total of KSh 170 billion in budgetary support. This is between September 2^nd and September 30^th 2026.

CBK received bids worth KSh 68 billion against KSh 6o billion in the September 2^nd auction and accepted KSh 47 billion.

In the September 16^thTreasury Bonds Auction, it received bid worth KSh 80 billion against KSh 60 billion that it was seeking. In the 30^th September Treasury Bonds Auction, it received bids worth 80.5 billion against KSh 50 billion that it was seeking for budget spending and accepted bids worth KSh 57 billion.