Treasury Bill Bids Reach KSh 68.50B for KSh 28B Offer as Three-Month Rate Slips to 8.75%Treasury Bill Bids Reach KSh 68.50B for KSh 28B Offer as Three-Month Rate Slips to 8.75%
Key Highlights
- Investors bid KSh 68.50B ($0.53B) for the KSh 28B ($0.22B) of Treasury bills on offer, a subscription of 244.64%, and the Central Bank accepted KSh 52.32B ($0.40B).
- The three-month bill drew KSh 49.80B ($0.38B) in bids against KSh 8B ($0.06B) offered, a subscription of 622.46%, and its accepted rate eased to 8.7500%.
- The 182-day rate slipped to 8.8600% from 8.8744%, while the one-year rate edged up to 9.0383% from 9.0352%, leaving the one-year bill undersubscribed at 66.43%.
Investors bid KSh 68.50B ($0.53B) for the KSh 28B ($0.22B) of Treasury bills the Central Bank of Kenya offered this week, and the bank accepted KSh 52.32B ($0.40B), almost twice what it had advertised. The three-month bill took the largest share of the demand, while its accepted rate eased to 8.7500%.
The result matters for anyone who borrows from or saves with Kenyan banks, because short-term government paper is a reference point for returns on money-market funds and for the cost of new government debt.
According to Central Bank of Kenya auction results for bills dated 19 October, total bids equalled 244.64% of the amount offered.
Where the money went
Demand was far from even across the three maturities. The 91-day bill drew KSh 49.80B ($0.38B) in bids against KSh 8B ($0.06B) offered, a performance rate of 622.46%, and the bank accepted KSh 34.24B ($0.26B) of it. The 182-day bill drew KSh 12.06B ($0.09B) against KSh 10B ($0.08B), a rate of 120.58%, with KSh 11.48B ($0.09B) accepted.
The 364-day bill was the exception. Bids of KSh 6.64B ($0.05B) fell short of the KSh 10B ($0.08B) offered, a performance rate of 66.43%, and the bank accepted KSh 6.59B ($0.05B). Of the KSh 52.32B accepted, KSh 34.20B ($0.26B) came from competitive bids and KSh 18.12B ($0.14B) from non-competitive bids, the route small investors use.
What happened to rates
Accepted rates moved by small amounts. The 91-day rate fell to 8.7500% from 8.7615% at the previous auction, and the 182-day rate fell to 8.8600% from 8.8744%. The 364-day rate rose slightly, to 9.0383% from 9.0352%. The weighted average rate on accepted bids is the figure the bank publishes as the market reference.
For savers, the changes are too small to alter returns noticeably. The gap between the three-month and one-year rates is now about 0.29 percentage points, so investors are paid only slightly more for locking money away for a year, and the one-year bill was the only one that did not attract enough bids.
The wider rate picture
Mwenendo reported that investors bid KSh 75.37B for KSh 28B at the 8 October auction, when yields also slipped. Rates have stayed below 10% across all maturities for weeks, and Mwenendo explained earlier how Treasury auctions set borrowing costs across the economy.
The Central Bank held its policy rate at 8.75% on 7 October, and the shortest bill rate now sits at that level. The weak one-year bid, set against heavy short-end demand, is the figure to watch at the next auction, because it shows how reluctant investors remain to commit their money for longer.
In Summary
- Who ran the auction?
- The Central Bank of Kenya, which auctions Treasury bills on behalf of the government.
- What was the result?
- Bids of KSh 68.50B ($0.53B) against KSh 28B ($0.22B) offered; KSh 52.32B ($0.40B) accepted.
- When were the bills dated?
- The bills carry a value date of 19 October 2026, with results published by the Central Bank on 15 October.
- Where does the demand show up?
- Mostly in the 91-day bill, which drew KSh 49.80B ($0.38B) against KSh 8B ($0.06B) offered.
- Why do the rates matter?
- Treasury bill rates are a reference for government borrowing costs and for returns on money-market funds.
- How did rates change?
- The 91-day rate eased to 8.7500% from 8.7615%, the 182-day to 8.8600% from 8.8744%, and the 364-day rose to 9.0383% from 9.0352%.