Kenyan Govt Gets KSh 43 Billion after CBK's May Treasury Bill's Sale
- The Kenyan government raised KSh 43.63 billion through the sale of 91-day, 182-day, and 364-day Treasury bills in an auction concluded on May 30, 2025
- The auction attracted total bids worth KSh 55.1 billion, more than double the KSh 24 billion on offer, indicating strong investor demand
- The 364-day Treasury bill was the most oversubscribed, drawing KSh 26.1 billion in bids against a KSh 10 billion offer, with CBK accepting KSh 15.7 billion at a fixed interest rate of 10.000%
Elijah Ntongai, a journalist at TUKO.co.ke, has over four years of financial, business, and technology research and reporting experience, providing insights into Kenyan and global trends.
The Kenyan government has raised KSh 43.63 billion through the sale of 91-day, 182-day, and 364-day Treasury bills in an auction concluded on May 30, 2025.
Source: UGC
According to data released by the Central Bank of Kenya (CBK), the auction, covering Treasury Bills Issue Numbers 2632/091, 2606/182, and 2560/364, attracted total bids worth KSh 55.1 billion, surpassing the KSh 24 billion offered.
Over subscribed Treasury Bills
The CBK accepted 79% of the bids. The 364-day paper was the most oversubscribed, receiving bids worth KSh 26.1 billion against an offer of KSh 10 billion.
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The CBK accepted KSh 15.7 billion at a fixed interest rate of 10.000%, slightly lower than the 10.0026% recorded in the previous auction.
The 91-day bill also saw robust demand, receiving KSh 19.2 billion in bids for a KSh 4 billion offer. The CBK accepted all the bids, amounting to KSh 19.2 billion, at an average interest rate of 8.2927%, a slight dip from the previous rate of 8.3231%.
Meanwhile, the 182-day tenor attracted KSh 9.8 billion in bids against a KSh 10 billion offer. The CBK accepted KSh 8.8 billion at a weighted average interest rate of 8.5642%, which was also slightly lower than the previous auction’s 8.5750%.
CBK stated that KSh 29.98 billion will be used for rolling over or redeeming maturing debt, while the remaining KSh 13.65 billion will go toward new borrowing.
This signals the government's continued reliance on domestic markets to finance its operations amid limited external financing.
Source: Twitter
When is the next Treasury bills auction?
The CBK has announced the next auction for June 5, 2025, where it aims to raise another KSh 24 billion through similar tenors.
The government's net repayment target in the upcoming auction is set at KSh 12.2 billion.
"The actual amount to be realised from the auction will be subject to National Treasury's immediate liquidity requirements for the week. Where several successful bidders quote a common rate, the Central Bank of Kenya (CBK) reserves the right to allot bids on a pro-rata basis.
The Central Bank reserves the right to accept/reject bids in part or in full without giving any reason. Individual bids must be of a minimum face value of KSh 50,000.00 for non-competitive and KSh 2,000,000.00 for competitive. Only investors with active CSD accounts are eligible," CBK stated.
CBK stated that bids for the 91-day, 182-day, and 364-day Treasury Bills must be submitted electronically via DhowCSD or Treasury Mobile Direct by 2pm on Thursday, June 5, 2025.
Payments for the accepted bids will have to be made to the Central Bank by 2pm on Monday, June 9, 2025.
Proofreading by Jackson Otukho, copy editor at TUKO.co.ke.
Source: TUKO.co.ke
