The Treasury raised Ksh.33.1 billion from the sale of the three-year bond, falling short of the Ksh.40 billion targets.
The paper was auctioned alongside a 15-year bond, which is still available until April 19, 2022, a longer-term note which aims to raise Ksh.30 billion.
The Central Bank of Kenya (CBK) had received bids totaling Ksh.34 billion for the three-year bond, but had rejected Ksh.908 million.
Accepted bids will be paid in full, with the security carrying a market-determined average interest rate of 11.76 percent.
The interest rate on the 15-year bond will be determined by the market, with this being the first offer for the bonds.
In recent years, the CBK has focused on selling long-term bonds in order to reduce short-term refinance risk. The three-year paper is the outstanding shot-term the CBK has issued.
T-bills provide even more liquidity while paying the lowest interest rates. The increased dominance of long-term bonds is viewed as a strategy for managing the public debt, which has risen rapidly in recent years.
