Central Bank of Kenya Raises KSh 57 Billion in Oversubscribed June Bills Sale

• The CBK raised KSh 57.39 billion in its Treasury bills auction on June 6, 2025, significantly surpassing its KSh 24 billion target
• The 364-day Treasury bill was the most oversubscribed, attracting KSh 43 billion in bids against a KSh 10 billion offer, with CBK accepting KSh 32.13 billion
• Interest rates for all tenors slightly declined, with the 91-day bill falling to 8.2816%, the 182-day to 8.5433%, and the 364-day to 9.9985%

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 Central Bank of Kenya (CBK) successfully raised KSh 57.39 billion in its latest Treasury bills auction dated June 6, 2025.

Notably, the CBK significantly surpassed the KSh 24 billion it had initially offered.

According to the auction results published by CBK, the 91-day, 182-day, and 364-day Treasury bills collectively received total bids amounting to KSh 61.41 billion, translating to an overall performance rate of 255.86%.

Subscriptions for Treasury bills

The 364-day bill was the most oversubscribed, attracting bids worth KSh 43.00 billion against an offer of KSh 10 billion, a remarkable 430.03% performance rate. Of these, CBK accepted KSh 32.13 billion at a bid-to-cover ratio of 1.10 for one year.

The 182-day T-bill, offered at KSh 10 billion, garnered KSh 10.49 billion in bids, resulting in a 104.86% performance rate. CBK accepted KSh 10.47 billion from these bids.

Meanwhile, the 91-day bill saw the lowest subscription rate, with KSh 7.92 billion in bids against an offer of KSh 4 billion, which was still above target, at a 197.94% performance rate. The CBK accepted KSh 7.79 billion from this tranche of bids.

What are the interest rates for Treasury bills?

The weighted average interest rate of accepted bids saw slight declines across all tenors compared to the previous auction.

The 91-day bill's rate fell to 8.2816% from 8.2927%, while the 182-day paper dropped to 8.5433% from 8.5642%. The 364-day instrument recorded a weighted average rate of 9.9985%, a slight dip from the previous 10.0000%.

The CBK noted that KSh 36.19 billion of the raised money will go toward refinancing maturing debts. The rollover includes redemptions of KSh 24.36 billion in 91-day bills, KSh 6.99 billion in 182-day securities, and KSh 4.84 billion in 364-day notes.

When will the next auction take place?

The CBK announced that the next Treasury bills auction will be held on June 12, 2025, with a total offer of KSh 24 billion across the three tenors.

"Bids must be submitted and received by CBK electronically via DhowCSD or Treasury Mobile Direct by 2.00 p.m Thursday, 12th June, 2025 for 91-day, 182-day and 364-day Treasury Bills. Payments must be made by electronic transfer using RTGS.

These payments must reach the Central Bank not later than 2.00 p.m on Monday, 16th June, 2025. Please provide the following details with each payment: CSD Account No., Amount Payable and payment key. These details can be obtained from the DhowCSD Investor Portal/App under the transactions tab on Friday, 13th June, 2025," CBK explained.

The auction results will be released the same day, with maturities expected to finance a mix of redemptions (estimated at KSh 10.86 billion) and new borrowing (KSh 13.14 billion).

May Treasury bills auction

Earlier, TUKO.co.ke reported that the CBK raised KSh 43.63 billion from the sale of 91-day, 182-day, and 364-day Treasury bills in an auction concluded on May 30, 2025.

The CBK surpassed the KSh 24 billion initially offered. The auction, which drew bids totaling KSh 55.1 billion, highlighted strong investor interest, particularly in the 364-day bill, which was oversubscribed with KSh 26.1 billion in bids for a KSh 10 billion offer.

The Central Bank of Kenya (CBK) accepted 79% of total bids and set interest rates slightly lower than in previous auctions.

Proofreading by Jackson Otukho, copy editor at TUKO.co.ke.

Source: TUKO.co.ke