Investor appetite for longer-term short-term debt instruments strengthened in this week’s Treasury Bills auction, with the 364-day paper driving total bids above target even as demand for shorter tenors weakened.
According to results released by the Central Bank of Kenya (CBK), the auction for Issue Nos. 2654/091, 2628/182 & 2582/364, dated November 3, 2025, received total bids worth KSh 24.25 billion against an offer of KSh 24.00 billion, translating to a performance rate of 101.06%.
Strong Demand for 364-Day Paper
The 364-day Treasury Bill attracted the bulk of investor interest, receiving KSh 20.82 billion in bids — more than double its KSh 10.00 billion offer, marking a performance rate of 208.23%.
The weighted average interest rate for accepted bids stood at 9.3404%, broadly unchanged from 9.3467% in the previous auction.
In contrast, the 91-day and 182-day papers recorded subdued performance rates of 46.72% and 15.62% respectively, attracting KSh 1.87 billion and KSh 1.56 billion in bids. The weighted average accepted yields stood at 7.8095% (91-day) and 7.9000% (182-day).
Market Summary
| Tenor | Amount Offered (KSh Mn) | Bids Received (KSh Mn) | Performance Rate (%) | Average Accepted Rate (%) |
|---|---|---|---|---|
| 91-Day | 4,000 | 1,868.60 | 46.72 | 7.8095 |
| 182-Day | 10,000 | 1,561.81 | 15.62 | 7.9000 |
| 364-Day | 10,000 | 20,823.16 | 208.23 | 9.3404 |
| Total | 24,000 | 24,253.57 | 101.06 | — |
The CBK accepted KSh 24.25 billion, of which KSh 17.84 billion came from competitive bids and KSh 6.40 billion from non-competitive bids.
The funds will primarily go towards rollovers/redemptions amounting to KSh 20.48 billion, leaving a net borrowing of KSh 3.65 billion.
Yields Hold Steady
The average accepted rates across all tenors remained largely stable compared to the previous auction:
- 91-day: 7.8095% (↓ 0.0195 bps)
- 182-day: 7.9000% (↑ 0.0350 bps)
- 364-day: 9.3404% (↓ 0.0063 bps)
The results indicate continued investor preference for longer tenors amid expectations of stable short-term interest rates and moderate inflation outlook.
Next Auction
The next Treasury Bills auction — Issue Nos. 2655/091, 2629/182 & 2583/364, dated November 10, 2025 — will be held on Thursday, November 6, 2025, with bids closing at 2:00 p.m..
Successful bidders are required to make payments by Monday, November 10, 2025, through RTGS or Treasury Mobile Direct.
