This archive report was first published on 10 July 2020.
The Central Bank of Kenya (CBK) has been busy since the start of the 2020/21 fiscal year on July 1, 2020, with a significant amount of domestic borrowing already underway.
On July 2, CBK floated treasury bills worth KSh24 billion, which received bids worth KSh76.183 billion, representing a 317 percent performance rate. The bank accepted KSh43.91 billion worth of treasury bills, consisting of KSh9.446 billion (91 days), KSh10.784 billion (182 days), and KSh23.68 billion (364 days).
Just a few days later, on July 7, CBK floated treasury bonds worth KSh60 billion in the reopened 5-year, 10-year, and 15-year bonds. The 5-year bond has a fixed coupon rate of 11.667%, the 10-year bond has a rate of 12.502%, and the 15-year bond has a rate of 12.857%.
On July 9, CBK floated treasury bills worth KSh24 billion, which received bids worth KSh85.964 billion, representing a 358 percent performance rate. The bank accepted KSh46.224 billion, comprising of KSh18.42 billion (91 days), KSh7.156 billion (182 days), and KSh20.648 billion (364 days).
According to the latest figures from CBK, the Government's domestic debt has risen significantly, with Treasury Bonds making up 69.84% of the debt load and Treasury Bills accounting for 23.87%.
As of June 26, 2020, the Government's domestic debt stood at KSh2.22 Trillion, up from KSh2.09 Trillion as of March 31, 2020. The Government's gross domestic debt now stands at KSh3.178 Trillion, which includes Treasury Bills and Bonds, overdraft from CBK, and other domestic debt.
