CBK Auction Oversubscribed as Treasury Bill Bids Hit Ksh55.5B

The Central Bank of Kenya (CBK) has recorded strong investor demand for Treasury bills, with the latest auction attracting bids worth Ksh 55.5 billion against the Ksh 28 billion offered by the government.

The September 10, 2026 auction was oversubscribed, with investors placing almost twice the amount the government had sought across the 91-day, 182-day and 364-day Treasury bills.

“The Treasury bill auction of September 10 received bids totalling Ksh 55.5 billion against an advertised amount of Ksh 28.0 billion, representing a performance of 198.2 per cent,” CBK said.

The 91-day Treasury bill attracted the highest level of interest, receiving bids worth Ksh 29.58 billion against an advertised amount of Ksh 8 billion. The government accepted Ksh 29.39 billion at an interest rate of 8.767 per cent, slightly lower than the rate recorded in the previous auction.

Investors also showed strong interest in the 182-day Treasury bill, placing bids worth Ksh 12.97 billion against Ksh 10 billion offered. The government accepted Ksh 11.31 billion at a rate of 8.930 per cent.

The 364-day Treasury bill received bids worth Ksh 12.96 billion, with Ksh 12.58 billion accepted at an interest rate of 9.067 per cent. Rates across all three Treasury bills declined marginally compared with the previous auction.

The strong demand came as investors also showed interest in a 10-year Treasury bond switch auction held on September 9. The bond attracted bids worth Ksh 13.5 billion against Ksh 10 billion offered, representing a performance rate of 135.2 per cent.

CBK data further showed increased liquidity in the banking sector during the week ending September 10. Commercial banks held average excess reserves of Ksh 21.3 billion above the required cash reserve ratio, while the average value of interbank transactions rose to Ksh 11.4 billion from Ksh 9.6 billion in the previous week.

While domestic investors continued to show appetite for government securities, yields on Kenya’s Eurobonds increased during the same period. According to the CBK, yields on the country’s international bonds rose by an average of 25.10 basis points.

The latest Treasury bills auction gives the government sufficient funds to meet its KSh28 billion target, while the slight drop in interest rates points to continued investor confidence in the short-term government securities.