Govt borrowed sh767.55b from public in April

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The Government raised sh767.55b from auctioning three securities on the domestic market in April this year.

This is contained in the finance ministry’s performance of the economy report for April 2025.

Of the total amount raised, sh452.43b was used for refinancing of maturing securities, while sh315.12b was for financing other items in the budget.

Yields (interest rates) on Treasury Bills for the 91-day and 182-day tenors dropped to the levels recorded in April 2024.

The report explains that yields on the 91-day and 182-day tenors declined to 9.5% and 12.8% in April 2025, from 11.3% and 13.2% the previous month, respectively.

On the other hand, yields for the 364-day treasury bill edged upwards to 15.1% from 14.8% over the period.

All auctions for treasury bills were oversubscribed, with the average bid-to-cover ratio of 1.67 in April 2025.

In April 2025, yields for the treasury bonds largely remained stable in comparison to the rates registered in the previous issuance of similar securities.

During the month, yields for the 2-Year and 15-Year tenor bonds remained unchanged at 15.75% and 17.00%, while the yields for the 5-Year tenor bond slightly edged upwards to 16.5% from 16.25%.

Treasury Bills (Tbills) are short-term financial debt instruments issued by a central bank on behalf of the Government to raise funds to finance budget deficits. Treasury bonds, on the other hand, are long-term financial instruments also issued by the Government through BOU to the investing public.

The investment period for treasury bills is short-term tenors of three months, six months and 1 year, while that of treasury bonds is long-term tenors of two years, three years, five years, 10 years and 15 years.