The Treasury bills auction in Week 8 of 52 in 2026 by the Central Bank of Kenya (CBK) recorded strong demand, with all tenors oversubscribed, reflecting strong investor appetite despite falling interest rates.
The 364-day paper recorded the strongest demand, receiving bids of KES 46.5 billion against a target of KES 10 billion, translating to a performance rate of 465.4% and an oversubscription of 365.4%. The CBK accepted KES 24.74 billion at an average interest rate of 8.9010%.
The 91-day bill received bids of KES 13.05 billion against an offer of KES 4.0 billion, while the 182-day bill attracted bids worth KES 11.4 billion against a KES 10.0 billion offer. The accepted yields on the 91-day and 182-day bills edged down slightly to 7.5899% and 7.7500%, respectively.
From the auction, the CBK accepted a total of KES 49.1 billion. Net borrowing stood at KES 8.2 billion.
CBK Rate Cut Shapes Investor Strategy
The outcome comes shortly after the CBK’s Monetary Policy Committee (MPC) cut its benchmark rate by 25 bps to 8.75% – its tenth consecutive rate cut in a bid to stimulate private sector lending and support economic growth.
The subscription on the 91-day paper reflects strong liquidity, cautious investor positioning and a preference for short-term instruments amid ongoing monetary easing cycle.
The strong demand for the 364-day paper underscores investors’ preference to lock in relatively higher yields for a long period as they expect further cuts in the Central Bank Rate (CBR).
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