The government through the National Treasury has turned down Ksh37 billion offered by investors during the auction of its treasury bonds.
The government sought to raise Ksh40 billion from the auction of the bonds, but due to oversubscription of the securities, the government raised Ksh59.3 billion.
According to CBK, the amount was raised from the auction of two bonds whose tenors were five and ten years, with the sale ending on March 20.
CBK noted that the auction took place between March 6 and March 20, with the five-year bond attracting Ksh35.7 billion out of which the government only accepted Ksh17 billion.
Meanwhile, the second bond whose tenor was ten years attracted Ksh23.8 billion in offers of which the government only accepted Ksh4.8 billion.
Out of the Ksh59.3 billion offered by investors, the government only took Ksh22 billion in what was termed as the government's interest in maintaining financial stability and investor trust.
The bonds listed in the Nairobi Securities Exchange were only eligible for investors with active Central Securities Depository (CSD) accounts.
In an analogous situation in February this year, the government raised Ksh241 billion from investors by issuing infrastructure bonds.
This is after the government sought to raise only Ksh70 billion to fund the different infrastructural projects in the country.
Due to the oversubscription of the bonds, the government was able to raise three times the amount it initially intended to raise.
The oversubscription was attributed to investors' confidence in the country's monetary policies and debt management strategies.
The issuance of the infrastructure bonds brought with it more benefits including stabilising the local currency against the dollar.
