The Central Bank of Kenya Accepts KSh 57.6Bn at Weekly T-Bills Auction

The Central Bank of Kenya(CBK) accepted bids worth KSh 57.59 billion at this week’s Treasury Bills Auction.

The state fiscal agent allocated KSh 29.6 billion of this amount to net borrowing from the domestic market in this auction and KSh 31.9 billion for redeeming maturing debt instruments. The Central Bank of Kenya Auction had an oversubscription rate of 255.90% as investors lined up for the lucrative yields offered.

The fiscal agent received total bids worth KSh 71.7 billion and accepted 80% of the bids submitted, rejecting the other more expensive ones.

Central Bank of Kenya Auction Results 20^th August 2026

The 91-day Treasury Bills were the most attractive, pulling in bids worth KSh 37.7billion with CBK accepting KSh 32.4 Billion, offering investors a return of 8.7700%. The 182-day Treasury Bonds attracted bids worth KSh 18.6 billion out of the KSh 10 billion, with CBK accepting KSh 9.7 billion, offering a return of 8.9480%. The 364-day Treasury Bills received KSh 15.4 billion out of the KSh 10 billion on offer, the Central Bank of Kenya accepting the entire amount while offering a Weighted Average Interest Rate of 9.0356% to successful bidders.

Breakdown:

• 91-day: KSh 32.44Bn @ 8.7700%
• 182-day: KSh 9.75Bn @ 8.9480%
• 364-day: KSh 15.41Bn @ 9.0356%

Meanwhile, the Central Bank of Kenya has revised terms for its KSh15 billion August switch auction, which will exchange three Treasury bills maturing on 7th Sept 2026 and a 15-year Treasury Bond first sold in 2012 for a 10-year Treasury Bond, first sold in 2019 and maturing in November 2029.

• Source T-bill yield: 8.7546%
• Source T-bill reference price: 99.7130 per KSh100
• FXD1/2012/015 market yield: 9.0935%
• Revised FXD1/2012/015 price: 106.9699 per KSh100
• Destination bond coupon: 12.28%
• Switch method: Multi-price auction
• Auction: 24 Aug 2026
• Settlement: 26 Aug 2026

Central Bank of Kenya Bond Switch Auction

According to a weekly fixed-income report by Standard Investment Bank(SIB), Central Bank of Kenya has initiated a voluntary KSh 15 billion debt switch auction—marking its third Treasury bill-to-bond switch on record and sixth overall switch in 2026—signalling a strategic pivot toward using liability management tools as active domestic debt management instruments.

This operation allows investors to convert three short-term Treasury bills maturing concurrently on 7th September 2026 alongside a 15-year paper maturing in 2027 with a 11.00% coupon into a 10-year Treasury Bond with a 12.28% coupon rate and which matures on 12th November 2029.

By targeting 22.4% of the KSh 67.07 billion originally accepted across the three source bills—which initially saw massive investor demand, including an 820.68% performance rate on the 91-day paper—the National Treasury aims to push immediate refinancing pressure out by over three years.

With settlement set for 26th August 2026, just 12 days ahead of the concentrated bill maturity wall, the switch effectively extends government debt duration while replacing short-dated weighted average yields of 8.68% with a long-term fixed obligation.

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