Kenya T-bill auction (31 Aug 2026) shows strong front‑end demand, weak 364‑day take‑up

On 31 August 2026 the Central Bank of Kenya accepted KSh44.32bn of KSh56.74bn in bids for 91-, 182- and 364‑day Treasury bills; the 91- and 182‑day tenors were heavily oversubscribed while the 364‑day bill was only 61.61% subscribed, keeping extension risk on the one‑year paper.

Concentration of demand in 91- and 182‑day bills reduces immediate short‑term borrowing stress but raises rollover risk because a lower take‑up at the 364‑day tenor means a larger portion of medium‑term financing must be reissued sooner. If this maturity split persists, the government may face more frequent refinancing needs or higher yield pressure when longer tenors are re-offered.

Next Treasury-bill auction (Issues 2698/091, 2672/182 & 2627/364) dated 07/09/2026 — subscription at the 364‑day tenor will be key.