This archive report was first published on 30 June 2020.
On June 30, 2020, the Treasury announced that it had achieved its domestic borrowing target of Sh409 billion for the 2019/2020 fiscal year, surpassing the initial target of Sh389 billion.
The Central Bank of Kenya (CBK) took advantage of the reduced pressure to lengthen the maturity profile of domestic debt to about 5.7 years from 4.1 years two years ago.
CBK Governor Patrick Njoroge attributed the success to the reduction in the share of short-term Treasury bills, which now stands at 28.9 percent, down from 34.5 percent a year ago.
According to Njoroge, the CBK aimed to increase the average time to maturity of the overall portfolio, which has been achieved.
Investors showed a heavy appetite for bonds, with a total of Sh224 billion bid in the four weekly T-bill auctions in June, from which the central bank took up less than a third at Sh69.1 billion.
The government made a net borrowing of Sh18.4 billion in the Sh40 billion bond sale, with the issue attracting bids worth Sh105.1 billion.
