The 91-day Treasury Bill was heavily oversubscribed in this week’s Central Bank of Kenya (CBK) auction, attracting strong investor demand as short-term interest rates stabilized below 8 percent.
According to CBK’s auction results for issues 2655/091, 2629/182, and 2583/364 dated November 10, 2025, the government received KSh 39.85 billion in total bids against a combined offer of KSh 24 billion, representing an overall performance rate of 166 percent.
The bulk of investor interest was concentrated in the 91-day paper, which posted a massive 383 percent subscription rate, with bids totaling KSh 15.3 billion against the KSh 4 billion on offer. The 182-day bill recorded a weak performance at 26 percent, while the 364-day paper was oversubscribed at 219 percent.
Short-Term Investors Dominate Market
Market analysts say the trend points to heightened investor preference for short-term instruments amid liquidity adjustments and uncertainty over future interest rate movements.
“The strong performance of the 91-day bill suggests investors are opting for flexibility, preferring to park funds short-term as they gauge how monetary conditions evolve,” said one Nairobi-based fixed-income analyst.
The weighted average rate for the 91-day bill came in at 7.7919 percent, nearly unchanged from 7.8095 percent in the previous auction. The 182-day bill eased slightly to 7.7934 percent from 7.9000 percent, while the 364-day bill edged up marginally to 9.3454 percent from 9.3404 percent previously.
Accepted Bids and Pricing
The CBK accepted nearly all valid bids, totaling KSh 39.85 billion, with KSh 30.16 billion coming from competitive bidders and KSh 9.68 billion from non-competitive applications.
The average prices per KSh 100 face value were:
- 91-day – KSh 98.0944
- 182-day – KSh 96.2593
- 364-day – KSh 91.4747
The market-weighted average interest rates were 7.7923%, 7.7934%, and 9.3455% respectively for the three maturities.
Borrowing and Repayments
Out of the proceeds, KSh 48.4 billion will go toward rollovers and redemptions, with a net repayment of KSh 1.18 billion to the market, according to CBK data.
This marks a modest tightening in short-term government borrowing as the National Treasury continues to manage domestic debt maturities while balancing liquidity in the financial system.
Next Auction Set for November 13
The CBK has announced the next Treasury Bills auction — issues 2656/091, 2630/182, and 2584/364 — scheduled for November 13, 2025, with the same combined offer of KSh 24 billion.
Bids must be submitted electronically via DhowCSD or Treasury Mobile Direct by 2:00 p.m. on Thursday, November 13, while payments are due by Monday, November 17, 2025, through RTGS transfers.
Non-competitive bids remain capped at KSh 50 million per tenor per investor account, except for state corporations, public universities, and semi-autonomous government agencies.
Summary of Auction Results
| Tenor | Amount Offered (KSh M) | Bids Received (KSh M) | Performance Rate (%) | Weighted Avg. Rate (%) | Accepted Amount (KSh M) |
|---|---|---|---|---|---|
| 91-Day | 4,000 | 15,325.02 | 383.13 | 7.7919 | 15,321.60 |
| 182-Day | 10,000 | 2,600.16 | 26.00 | 7.7934 | 2,600.16 |
| 364-Day | 10,000 | 21,929.46 | 219.29 | 9.3454 | 21,924.43 |
| Total | 24,000 | 39,854.64 | 166.06 | — | 39,846.19 |
Market Outlook
Analysts expect the Treasury to maintain cautious borrowing through short-term bills as part of its liquidity management strategy, especially ahead of the December festive period and early 2026 maturities.
Despite the oversubscription, interest rates have remained broadly stable, suggesting confidence in the government’s short-term debt instruments amid steady demand from banks and institutional investors seeking low-risk returns.
