Treasury bills drops by Sh102bn in a year

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The domestic debt share held in the form of Treasury bills has decreased by over Sh102.3 billion in the past one year.

Central Bank of Kenya (CBK) data illustrates that the outstanding stock was at a 33-month low of Sh776.08 billion as at February 5, representing 22.5 per cent of the total securities (Treasury bills and bonds) currently ranking at Sh3.44 trillion.

A year ago, it took a Sh878.40 billion stand, comparable to 30.1 percent of total securities.

The decrease boosts the Central Bank of Kenya’s decision to decrease its dependency on Treasury bills for its financing objectives and increase the mean period to maturity of the debt securities to decrease refinancing risk.

This has indicated disbursement of longer dated Treasury bonds, increasing the average time to maturity to 8.5 years in January from 7.96 years a year earlier, and 7.09 years in January 2019.

“The Treasury bills were meant to be liquidity management instruments,” CBK Governor Patrick Njoroge stated during a January post Monetary Policy Committee meeting media briefing.

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Anthony Kiratu is the Founder of Finsolutions. He is a financial analyst with over 5 years experience in research, investment advisory, valuation and financial modelling. Anthony is a member of the Institute of Certified Investment and Financial Analysts and Institute of Certified Public Accountants of Kenya. He is passionate about development of African Capital Markets through training of investors and dissemination of information for sound financial and investment decision making process. He is also a part-time lecturer in the Certified Investment and Financial Analyst course in the subjects of International Finance, Portfolio Management, Equity Investment Analysis, and Fixed Income Securities. Email: anthony@finsolutions.co.ke Contact: +254 780216631

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