Investors demonstrated robust demand for Kenyan government securities in the Treasury bills auction held on July 23, 2026, with bids surpassing the government’s target by a significant margin.

According to the Central Bank of Kenya (CBK) Weekly Bulletin, bids totaling Ksh38.5 billion were received against an advertised offer of Ksh28.0 billion, achieving a performance rate of 137.5 percent. This strong subscription was accompanied by a slight decline in yields across all maturities.

Strong Interest in Short-Term Papers

  • The 91-day Treasury bill attracted the highest demand, with bids amounting to Ksh22.06 billion against an offer of Ksh8 billion.
  • The 182-day bills received bids worth Ksh11.56 billion compared to the Ksh10 billion offered.
  • The 364-day bills attracted Ksh4.88 billion in bids, below the Ksh10 billion target.

Average interest rates eased marginally, settling at 8.782% for the 91-day, 8.955% for the 182-day, and 9.036% for the 364-day Treasury bills. This indicates investors’ continued preference for government debt despite slightly lower yields.

Liquidity and Market Stability Support Uptake

The strong uptake coincided with stable liquidity conditions in the banking sector. The CBK reported that excess reserves averaged Ksh14.7 billion above the mandatory cash reserve requirement, ensuring ample funds for financial institutions to invest.

The Kenya Shilling Overnight Interbank Average Rate held steady at 8.75%, reflecting a stable money market environment that likely encouraged investor participation.

Long-Term Bonds Also Oversubscribed

Investor appetite extended to longer-term government securities as well. The re-opened 20-year and 25-year Treasury bonds auctioned on July 22, 2026, attracted bids totaling Ksh85.9 billion against an offer of Ksh40.0 billion, more than doubling the target with a performance rate of 214.8%.

The strong demand for both short and long-term government debt underscores sustained investor confidence in Kenya’s domestic debt market, supporting the government’s efforts to finance budgetary needs while managing borrowing costs.