UAE Treasury sukuk and bonds attract $1.24bn in bids as auction oversubscribed 4.1 times

The government's recent Treasury bill auction on October 29, 2026, attracted more bids than anticipated, with investors submitting Ksh51.9 billion against an advertised amount of Ksh28 billion. According to the Central Bank of Kenya (CBK) in its Weekly Bulletin dated October 30, the auction recorded a performance rate of 185.2 percent.

The 91-day Treasury bill saw the highest demand, with Ksh40.6 billion in bids against an offer of Ksh8 billion, while the 182-day and 364-day bills received Ksh5.3 billion and Ksh5.9 billion respectively, below their advertised amounts. The average interest rate for the 91-day bill was 8.750 percent, decreasing to 8.851 percent for the 182-day bill, and increasing to 9.029 percent for the 364-day bill.

The CBK noted that interest rates on the 91-day and 364-day bills marginally increased, while the 182-day rate declined. The auction also came at a time when the domestic money market recorded excess reserves among commercial banks, standing at Ksh32.6 billion above the required 3.25 percent Cash Reserve Ratio. Despite lower interbank activity, the auction's high demand highlights investor interest in short-term government securities.