Outstanding Stock of Treasury Bills by Holders


Post Date: 09 July 2019   |   Category: General   |   Hits: 2051


Source: National Treasury | Annual Public Debt 2017-18
In June 2016 compared to June 2015, the stock of Treasury bills increased by 84.4 per cent to Ksh 588,088 million from Ksh 318,929 million while the proportion held by commercial banks increased by 67.4 per cent to Ksh 361,859 million from Ksh 217,742 million. In the same period, holdings by pension fund institutions increased to 20.1 per cent from 12.8 per cent while proportion held by insurance companies decreased to 3.1 per cent from 6.5 per cent. The insurance, banking and pension industry adhere to investment guidelines set out by the Insurance Regulatory Authority, Central Bank of Kenya and the Retirements Benefits Authority respectively.  The coordinated efforts between the government and the Central bank are important for the implementation of monetary policy and the stability of the financial system. This relates to the management of public debt by scrutinizing the maturity and size of the debt as well as the scheduled repayments of interest in a way that does not overwhelm national operations. For this reason, public debt should be structured in such a way that it does not create market shocks.
Source: National Treasury | Annual Public Debt 2017-18
In June 2016 compared to June 2015, the stock of Treasury bills increased by 84.4 per cent to Ksh 588,088 million from Ksh 318,929 million while the proportion held by commercial banks increased by 67.4 per cent to Ksh 361,859 million from Ksh 217,742 million. In the same period, holdings by pension fund institutions increased to 20.1 per cent from 12.8 per cent while proportion held by insurance companies decreased to 3.1 per cent from 6.5 per cent. The insurance, banking and pension industry adhere to investment guidelines set out by the Insurance Regulatory Authority, Central Bank of Kenya and the Retirements Benefits Authority respectively.  The coordinated efforts between the government and the Central bank are important for the implementation of monetary policy and the stability of the financial system. This relates to the management of public debt by scrutinizing the maturity and size of the debt as well as the scheduled repayments of interest in a way that does not overwhelm national operations. For this reason, public debt should be structured in such a way that it does not create market shocks.