CBK Announces Next Auction as Kenyans Loan Govt KSh 18 Billion in Treasury Bills
Elijah Ntongai, a journalist at TUKO.co.ke, has more than three years of financial, business, and technology research and reporting expertise, providing insights into Kenyan and global trends.
- The Central Bank of Kenya (CBK) has released the results for the Treasury Bills (T-Bills) auction dated January 16, 2025.
Source: UGC
The CBK detailed the performance of and allocations for 91-day, 182-day, and 364-day T-Bills during the auction held on January 16.
Treasury Bills are government securities that the government of Kenya auctions to raise funds domestically.
The government had offered a total of KSh 24 billion but received bids amounting to KSh 18.86 billion, which translated to a performance rate of 78.58%.
Notably, this was a drop in performance compared to the auction on January 9, which received bids worth KSh 24.457 billion against the available offer of KSh 24 billion.
The funds raised will primarily be used for rollover and redemptions of KSh 17.76 billion, while the remaining KSh 665.95 million will be allocated for new borrowing or net repayment.
CBK reported that the 91-day Treasury Bill attracted bids totalling KSh 3.38 billion against an offer of KSh 4 billion, resulting in a performance rate of 84.57% with a weighted average interest rate of 9.5647%.
The 182-day Treasury Bill received bids worth KSh 5.45 billion out of the KSh 10 billion on offer, achieving a performance rate of 54.47% with a weighted average interest rate of 10.0299%.
Meanwhile, the 364-day Treasury Bill recorded bids amounting to KSh 10.03 billion, fully meeting the KSh 10 billion target and posting a weighted average interest rate of 11.3044%.
The total amount accepted for all tenors stood at KSh 18.12 billion, with KSh 12.99 billion allocated to competitive bids and KSh 5.12 billion to non-competitive bids.
In comparison to the previous auction, the weighted average interest rates for the 91-day and 182-day T-Bills and the 364-day T-Bill remained stable, showing no significant variance.
The Central Bank of Kenya (CBK) has announced the upcoming Treasury Bills auction set for January 23, 2025.
A total of KSh 24 billion will be on offer, divided into three tenors: KSh 4 billion for the 91-day T-Bill, KSh 10 billion for the 182-day T-Bill, and KSh 10 billion for the 364-day T-Bill.
As reported earlier, investors are required to submit bids electronically via the CBK Dhow CSD platform.
The Central Bank reserves the right to accept or reject bids in part or in full without explanation, requiring a minimum face value of KSh 50,000 for non-competitive bids and KSh 2,000,000 for competitive bids, limited to investors with active CSD accounts.
Source: TUKO.co.ke
