- The Central Bank of Kenya (CBK) is inviting the public to invest in government securities worth KSh 24 billion in a special year-end auction, with interest rates remaining largely stable
- Investors can bid on 91-day, 182-day, and 364-day Treasury Bills, with the highest yield on the one-year paper holding just below 10%
- All bids for the offer, intended to raise funds for government operations, must be submitted electronically by noon on Wednesday, December 31, 2025
Elijah Ntongai, an editor at TUKO.co.ke, has over four years of financial, business, crypto and technology research and reporting experience, providing insights into Kenyan, African, and global trends.
The Central Bank of Kenya has opened a KSh 24 billion Treasury Bills auction, providing a final investment opportunity in government securities before the year ends.
Source: UGC
The offer comprises KSh 4 billion in 91-day bills, KSh 10 billion in 182-day bills, and KSh 10 billion in 364-day bills.
According to the auction announcement signed by Robert Aloo for the Director of Financial Markets, all bids must be submitted and received by CBK electronically via the DhowCSD or Treasury Mobile Direct platforms by 12pm on Wednesday, December 31, 2025.
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This comes as the interest rates on government securities show continued stability, with the key 364-day rate holding below the 10% mark.
What were the results of the previous auction?
The results for the Treasury Bills auction released on December 24 show a poor performance in investor uptake.
The government offered a total of KSh 24 billion but received bids worth only KSh 5.41 billion, representing a performance rate of 22.55%.
The 182-day tenor saw the weakest demand, receiving bids for just KSh 712 million against a KSh 10 billion offer.
Interest rates remained stable as the 91-day bills were accepted at a weighted average rate of 7.7281%, a slight decrease from the previous auction’s 7.7749%.
The 182-day bills maintained their rate at 7.8000%, while the 364-day bills were accepted at 9.2109%, also showing a marginal decline from 9.2287%.
What are the key details for the new year-end auction?
The upcoming auction presents a final window for individuals and institutions to invest in government debt for 2025.
Individual non-competitive bids must be a minimum of KSh 50,000, while competitive bids start at KSh 2 million.
The CBK has emphasised that non-competitive bids, where investors accept the average market rate, are limited to a maximum of KSh 50 million per investor account per tenor.
This cap does not apply to State Corporations, public universities, and semi-autonomous government agencies (SAGAs).
After the auction results are announced, payment details (CSD Account Number, Amount Payable, and payment key) will be available on the investor portal under the transactions tab on Friday, January 2, 2026.
The CBK reserves the right to accept or reject bids in part or in full and to allot bids on a pro-rata basis where necessary.
Source: Facebook
Is the Kenyan government over reliant on domestic debt?
In other news, the Kenyn government has turned to borrowing from the domestic market, to meet its fiscal responsibilities.
The government has faced reduced external funding from its donor countries such as the US, as well as the International Monetary Fund.
This follows the cancellation of the funding programme that Kenya had with the IMF.
Consequently, the government has increasingly relied on domestic government securities to meet its obligations.
Proofreading by Jackson Otukho, copy editor at TUKO.co.ke.
Source: TUKO.co.ke
