Kenya’s Treasury bills auction dated 1 September 2025 show yields at three-year lows and extraordinary investor demand, even as outstanding T-bill debt stock climbed past the one trillion shilling mark to fresh records.
- •At the auction, the Central Bank of Kenya (CBK) accepted KSh 31.91Bn against an offer of KSh 24.00Bn.
- •Bids totaled KSh 32.03Bn, giving an overall performance rate of 133.46%.
- •The 91-day tenor drew the sharpest demand, attracting nearly KSh 20.0Bn in bids, more than five times the KSh 4.0 billion on offer.
CBK accepted KSh 19.88 billion on this paper, highlighting a heavy preference for short-term securities amid the rate outlook.
Auction Rates and Comparisons
- •91-day: 7.9999%, marginally down from 8.0000% in the previous auction. Last under 8% in June 2022.
- •182-day: 8.0500%, down from 8.0706% prior. Last at these levels in March 2022.
- •364-day: 9.5691%, slightly lower than 9.5734% last week. Last this low in January 2022.
The declining rates confirm a sustained easing trend following the CBK policy rate cut earlier in 2025, which has pushed short-term yields to their lowest levels in over three years.
Debt Stock at All-Time Highs
From KSh 615.9 billion in June 2024, the stock of Treasury bills rose past KSh 1 trillion in June 2025, reaching KSh 1.036 trillion in July and KSh 1.05 trillion by mid-August. T-bills now account for nearly 17% of domestic securities, up from 11.8% a year ago. This marks a 68% year-on-year increase, the sharpest expansion since the 2019 peak.
While the growth reflects strong investor appetite, it also underscores the government’s rising reliance on short-term debt to meet liquidity needs, raising rollover and refinancing risks. Domestic debt service pressures remain heavy, with debt servicing consuming nearly two-thirds of government revenue.
The recent surge in short-dated securities has coincided with shifting investor behavior. Appetite has favored the 91-day paper, even as CBK signaled intentions earlier in the year to streamline issuance by scrapping the 364-day tenor. Meanwhile, declining T-bill yields have spurred some institutional investors to pivot toward longer-term Treasury bonds, evidenced by oversubscribed reopenings in June and July.
Kenya’s gross domestic debt reached KSh 6.40 trillion in mid-August 2025, with T-bills providing critical near-term liquidity. The balance between managing borrowing costs, lengthening maturities, and sustaining investor confidence remains central to CBK’s issuance strategy.
| Metric | 91-day | 182-day | 364-day | Total |
|---|---|---|---|---|
| Amount Offered | 4.00 Bn | 10.00 Bn | 10.00 Bn | 24.00 Bn |
| Bids Received | 19.97 Bn | 1.80 Bn | 10.25 Bn | 32.03 Bn |
| Amount Accepted | 19.88 Bn | 1.78 Bn | 10.25 Bn | 31.91 Bn |
| Performance Rate | 499.25% | 18.04% | 102.55% | 133.46% |
| Weighted Avg Rate | 7.9999% | 8.0500% | 9.5691% | — |
| Last Avg Rate | 8.0000% | 8.0706% | 9.5734% | — |
| Variance (bps) | ▼0.01bps | ▼2.06bps | ▼0.43bps | — |
