Saturday 18th April, 2026 08:43 AM|
Kenya’s government securities market recorded mixed results in mid-April 2026, with the Treasury bill auction showing weaker demand compared to the Treasury bond auction.
According to the Central Bank of Kenya (CBK) Weekly Bulletin released on April 17, 2026, the Treasury bill auction held on April 16 received bids totalling Ksh 14.0 billion against an advertised Ksh 24.0 billion, representing a performance rate of 58.3 percent.
The government accepted approximately Ksh 13.97 billion. Interest rates on the 91-day, 182-day, and 364-day papers edged higher, with the 91-day bill averaging 7.424 percent, the 182-day at 7.830 percent, and the 364-day at 8.272 percent.
The results indicated reduced appetite for short-term securities compared to previous weeks.
“The Treasury bill auction of April 16 received bids totalling Ksh 14.0 billion against an advertised amount of Ksh 24.0 billion, representing a performance of 58.3 percent. Interest rate on the 91-day, 182-day and 364-day Treasury bills increased marginally,” read the CBK bulletin dated April 17, 2026.
Treasury bond performance and investor demand
In contrast, the Treasury bond auction held on April 15 recorded strong demand. The reopened and new 30-year bonds received bids totalling Ksh 38.3 billion against an offer of Ksh 20.0 billion, representing a subscription rate of 191.7 percent.
The CBK accepted over Ksh 30 billion from the auction, with the new FXD1/2026/030 bond attracting significant interest from investors. The bond, maturing in 2056 with a 12.5 percent coupon, contributed to the strong uptake.
The performance reflected increased investor preference for long-term government paper and for extended debt-maturity positioning.
Secondary markets and broader financial indicators
The domestic secondary bond market also recorded increased activity, with turnover rising 48.34 percent during the week ending April 16, 2026. In the equities market, the Nairobi Securities Exchange posted gains, with the NASI rising 0.85 percent, NSE 25 increasing 0.89 percent, and NSE 20 gaining 1.11 percent.
Market capitalisation rose 0.85 percent, while equity turnover increased 28.45 percent and total shares traded rose 59.36 percent.
In external markets, Kenya’s Eurobond yields declined by an average of 19.35 basis points. The movement aligned with similar trends in Côte d’Ivoire and Angola.
The Kenyan shilling remained stable at around Ksh 129.18 per U.S. dollar on April 16. Foreign exchange reserves stood at USD 13,306 million, equivalent to approximately Ksh 1.72 trillion, providing 5.6 months of import cover.
Remittance inflows and interbank rates remained steady, supporting liquidity in the financial system. The developments reflect differing investor preferences across maturities while maintaining active participation in government securities markets.