Kenya Bond Market Sees Strong Demand Amid Global Volatility
The Kenyan bond market saw significant demand in recent weeks, despite global rate hikes and oil price volatility. The Kenya Shilling Overnight Interbank Average (KESONIA) closed at an average of 8.75%, with interbank lending increasing by 19% to KES 11.40Bn.
Investor appetite for Treasury Bills softened, with total submitted bids falling to KES 42.72 billion compared to last week's KES 55.51 billion. The 91-day Treasury Bill remained the most attractive debt instrument, registering a performance rate of 291%.
The Central Bank of Kenya auctioned two reopened bonds (FXD1/2019/020 and FXD1/2026/030) with coupon rates of 12.9% and 12.5%, respectively. Investor demand was strong, pushing total bids to KES 81Bn against an initial offer of KES 60Bn.
The Kenyan Shilling displayed mixed performance against major global and regional currencies, strengthening by 3.3% against the Japanese Yen (JPY/KES) but weakening across European counters.