In week six of the year, the Central Bank of Kenya’s (CBK) treasury bills recorded mixed performance with the 91-day and 364 -day papers attracting strong demand, while the 182-day paper recorded weak uptake.
The 91-day paper received bids worth KES 12.96 billion against an offer of KES 4 billion, translating to a performance rate of 323.9%, highlighting strong investor demand for short term instruments. The weighted average interest rate on accepted bids settled at 7.6%, largely unchanged from the previous auction.
Conversely, the 182-day paper saw lower demand, attracting bids worth KES 497 million against a target amount of KES 10 billion, translating to a subscription rate of 4.97%. The weighted average interest rate stood at 7.79%.
The 364-day treasury bill received KES 50.83 billion in bids against a targeted amount of KES 10 billion, reflecting a performance rate of 508.3% and an oversubscription of 408.3%. The CBK accepted KES 36.58 billion, with the weighted average yield standing at 9.20%.
Overall, the CBK accepted a total of KES 50.04 billion in the week’s auction.
CBK MPC Meeting Outlook
Looking forward, all attention turns to the upcoming CBK Monetary Policy Committee (MPC) meeting scheduled for February 10, 2026, when the apex bank is expected to provide clearer guidance on the direction of the Central Bank Rate (CBR). Any change on the policy rate is likely to influence yield levels across tenors.
In the last meeting, the CBK lowered the CBR by 25 basis points to 9.00%.
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