The Central Bank of Kenya (CBK) on Thursday reported strong investor appetite in the latest Treasury Bills auction, with Sh24.25 billion collected against an offer of Sh24 billion.
The results, announced by CBK’s Director of Financial Markets David Luusa, indicate that investors continue to favour government securities amid a tightening liquidity environment.
According to the results of Issues 2654/091, 2628/182, and 2582/364, dated November 3, 2025, the total bids received stood at Sh24.25 billion, translating to a performance rate of 101.06 percent.
The auction reflected mixed investor sentiment across the three tenors, with the 364-day Treasury Bill being the most preferred.
The one-year paper received bids worth Sh20.8 billion against an offer of Sh10 billion, marking an impressive 208.23 percent subscription rate.
In contrast, the 91-day and 182-day bills were undersubscribed, attracting Sh1.86 billion and Sh1.56 billion, representing 46.72 percent and 15.62 percent performance rates respectively.
“The total amount accepted stood at Sh24.24 billion, of which Sh17.84 billion were competitive bids and Sh6.4 billion were non-competitive,” the statement signed confirmed.
The auction results showed stability in interest rates, with marginal variations compared to the previous auction.
Accepted bids averaged 7.8095 percent for 91-day bills, 7.9 percent for 182-day bills, and 9.3404 percent for the 364-day paper.
The rates showed only slight movement from the last auction, where the 91-day and 182-day tenors averaged 7.829 percent and 7.865 percent, respectively.
This indicates that investor confidence remains firm, with the market pricing government securities at relatively stable yields despite ongoing fiscal tightening and inflationary pressures.
The CBK noted that the proceeds from the auction will go toward rollovers and redemptions worth Sh20.47 billion, with Sh3.65 billion channelled to new borrowing.
According to the results, Sh17.17 billion of the redemptions will go to the 364-day paper, while the 91-day and 182-day maturities account for Sh1.98 billion and Sh1.32 billion, respectively.
“The auction outcome reflects investor confidence in short-term government instruments and the CBK’s prudent liquidity management,” the results indicated.
The CBK also confirmed that non-competitive bids remain capped at Sh50 million per investor per tenor, with exceptions for State Corporations and public universities.
The next Treasury Bills auction, Issue Nos. 2655/091, 2629/182, and 2583/364, is set for November 10, 2025, with a similar offer of Sh24 billion.
Payments for successful bids must be made via electronic transfer (RTGS) by 2:00 p.m. on Monday, November 10, 2025, according to CBK instructions.
The strong subscription of the long-term paper suggests that investors are locking in current rates amid expectations of rate adjustments by the CBK’s Monetary Policy Committee in the coming months.
As Kenya continues to manage domestic borrowing pressures, the consistent oversubscription of Treasury Bills underscores sustained investor confidence in government debt instruments as a safe and reliable short-term investment option.
