Treasury has started the fiscal year 2020/21 on high domestic borrowing. CBK has already floated securities worth KSh108 billion in the few days since the fiscal year started on July 1, 2020.
On July 2 CBK floated treasury bills worth KSh24 billion that received bids worth KSh76.183 billion representing a 317 percent performance rate. CBK accepted KSh43.91 billion worth of treasury bills consisting of KSh9.446 billion (91 days), KSh10.784 billion (182 days), and KSh23.68 billion (364 days).
On July 7 CBK floated treasury bonds worth KSh60 billion in the reopened 5-year, 10 year, and 15-year bonds. In this case, the 5-year bond has a fixed coupon rate of 11.667%. 12.502%, for the 10-year bond, and 12.857% for the 15-year bond.
On July 9 CBK floated treasury bills worth KSh24 billion that received bids worth KSh85.964 billion representing a 358 percent performance rate. CBK accepted KSh46.224 billion comprising of KSh18.42 billion (91 days), KSh7.156 billion (182 days), and KSh20.648 billion (364 days).
Latest figures from CBK indicate that Government Domestic Debt, in terms of Treasury Bonds has risen from KSh2.09 Trillion as at 31st March, 2020 to KSh2.22 Trillion on 26th June, 2020.
The Government’s gross domestic debt now stands at KSh3.178 Trillion, which includes Treasury Bills and Bonds, overdraft from CBK, and other domestic debt. Treasury Bonds make up 69.84% of the domestic debt while Treasury Bills account for 23.87% of the debt load.