UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549


_________

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934


Date of Report (Date of earliest event reported): July 7, 2006



                       KENTUCKY BANCSHARES, INC.
          (Exact Name of Registrant as specified in Charter)


   Kentucky                   33-96358              61-0993464
 (State or other            (Commission            (IRS Employer
  jurisdiction of           File Number)        Identification No.)
  incorporation)


P.O. Box 157, Paris, Kentucky                          40362-0157
(Address of principal executive offices)               (Zip code)


(859)987-1795
(Registrant's telephone number, including area code)

N/A
(Former name or former address, if changed since last report.)


Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under
any of the following provisions:

?  Written communications pursuant to Rule 425 under the Securities Act
(17CFR230.425)

?  Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)

?  Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))

?  Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
INFORMATION TO BE INCLUDED IN THE REPORT


  Item 8.01. Other Events

	On July 7, 2006, the Registrant announced that it had completed
the merger with Peoples Bancorp of Sandy Hook, Inc., with offices in
Morehead and Sandy Hook, Kentucky.  Attached as Exhibit 99.1 is a Press
Release, which the Company released on July 7, 2006 announcing the
consummation of the merger.

  Item 9.01.  Financial Statements and Exhibits

Exhibit 99.1 - Press release dated July 7, 2006 announcing the
merger with Peoples Bancorp, Inc.



SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned hereunto duly authorized.

KENTUCKY BANCSHARES, INC.



Date: July 7, 2006                   By      /s/ Gregory J. Dawson___
         Gregory J. Dawson
         Chief Financial Officer