Last week, the Central Bank of Kenya (CBK) offered 91-day and 182-day treasury bills for a total of Kshs. 7 billion. There were 190 bids for the 91-day bills amounting to Kshs. 1.19 Billion representing 30% subscription and 170 bids for the 182-day bills amounting to Kshs. 4.47 Billion, representing 149% subscription. Bids accepted amounted to Kshs. 1.19 Billion for 91-day and Kshs. 4.47 Billion for the 182-day, that is, all the bids were accepted. The weighted average rate of the accepted bids, which will be applied for non-competitive bids, was 16.728% and 17.660% for the 91-day and 182-day Treasury Bills respectively.
Comparative average interest rates
| This auction | Last auction | |
| (%) | (%) | |
| 91-day | 16.728 | 17.006 |
| 182-day | 17.660 | 17.726 |
Average interest rates for both the 91-day bills and the 182-day bills reported slight declines, meaning investors will receive slightly lower returns.
The CBK will have an auction this week on 91-day, 182-day and 384-day treasury bills and the specifics are as follows:
The Monetary Policy Committee (MPC) is expected to sit this week and we anticipate that interest rates will be maintained to catalyze the drop in inflation even further.
Read more on the MPC here