CBK Raises KSh 27.6 Billion in T- Bills Auction, a 115.9% Subscription

Nov 06 2020

The Central Bank of Kenya (CBK) accepted bids worth KSh 27.554 Billion from this week’s Treasury Bills Auction out of KSh 24 Billion that was offered, representing a subscription rate of 115.93%.

The KSh 4 Billion 91-day Treasury Bills attracted bids worth KSh 2.3 Billion, representing a performance of 56.9%. Simultaneously, the KSh 10 Billion 182-day T-Bills received submissions worth KSh 4.6 Billion, with the CBK accepting a total of KSh 4.6 Billion, a performance rate of 45.5%.

The 364-day T Bills was the most attractive, with bids worth KSh 20.7 Billion being accepted out of the KSh 10 billion offered.

The CBK accepted KSh 13.5 Billion in competitive bids and KSh 14.1 Billion in non-competitive bids.

Investors were offered an average interest rate of 6.666%, 7.072%, and 7.994% on the 91-days, 182-days, and 364-days Treasury Bills, respectively.

This is compared to 6.653%, 7.038%, and 7.933% offered for these Bills in the previous auction.

The next auction will be held on Thursday, 12th November 2020, with investors being offered the 91-day, 182 day, and one-year Treasury Bills amounting to a KSh 24 Billion.

The Central Bank of Kenya has said that all bids must be submitted and received by the CBK by 2 pm on Thursday, 12th November, with those who are successful to make their payments not later than 2.00 pm on Monday, 16th November 2020.

Non-competitive bids are subject to a maximum of KSh 20 Million per investor for each T-Bill except for State Corporations, public universities, and semi-autonomous agencies.

Kenyan Wall Street

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