Investors’ bid for Kenya’s Treasury bills fell to lowest level this week as it maintained a decline for the seventh auction in a row amid poll jitters arising from repeat polls.
Subscription rates for the three short-term papers, central bank data showed Saturday, stood at 12 percent, 13 percent and 63 percent respectively. For the 91-day paper, the apex bank put up for sale bills worth 39 million dollars.
On the other hand, the 182 and 364 days bills worth 98 million dollars each were up for sale. From the 39 million dollars sought from the three-month bill, the Central Bank managed to raise 5 million dollars only.
On the other hand, from the 182-day bill, the bank raised 13 million dollars, far less than what it had sought from the market.
And from the 364-day bills worth 98 million dollars put up for sale, the apex bank managed to get 63 million dollars, with the paper being the best performer of the three.
The apex bank accepted bids worth 82 million dollars from all the three short-term papers, a drop from 104 million dollars last week.
Analysts attributed the poor show to uncertainty arising from the Oct. 26 elections, which saw investors withhold their money as they wait for the end of the elections.
The East African nation’s domestic debt currently stands at 21 billion dollars which is 27.4 percent of the gross domestic product, according to the central bank. On the other hand, external debt stands at 23 billion dollars or 30 percent of GDP. Enditem