Kenyan Finance: Treasury Bills Rates Drop As of April 2024

At the latest Government Securities Auction, Treasury Bills saw a tiny drop in the interest rates offered by the Central Bank of Kenya (CBK). This is the first time we’ve seen this happen in 24 months!

CBK got bids totaling KSh 28.5 billion at the Weekly T-Bills auction. That’s against KSh 24 billion offered at the Government Securities Market. This was a solid 118.7% performance.

In the CBK weekly bulletin, it shows that the interest rates on the 364-day Treasury bill stayed steady. However, the rates on the 91-day and 182-day treasury bills dipped a bit.

Most Investors are loving the short-term game. The 91-day treasury bills got bids worth KSh 7.9 billion out of the KSh 4 billion available. Then there’s the 364-day treasury bill, which got bids worth KSh 13.4 billion out of KSh 10 billion on offer.

For April T-Bonds Tap Sale results (which are long term investments), the 5-year and 10-year Treasury Bonds dated 8th April 2024 received bids worth KSh 47.8 billion out of the KSh 25 billion advertised. CBK accepted KSh 45.8 billion.

The most favoured was the 5-year bond with bids worth KSh 35.6 billion at a coupon rate of 16.8440. The 10-year Treasury Bond got bids worth KSh 12.2 billion, and CBK accepted KSh 11.9 billion.

The bonds were oversubscribed, with a subscription rate of 191.2%. CBK received bids worth KSh 47.8 bn against the offered KSh 25.0 bn and accepted bids worth KSh 45.8 bn.

currently, CBK is looking to raise KSh 40 billion through a re-opened two–year fixed coupon Treasury Bond tap sale. This is part of their plan for budget support.