Interbank rate rises to a record high of 11.01 percent

Secondary Market: Investors remained absent from the secondary trading market amid significant constraints in the money market. As a result bond turnover dipped substantially to KES 4.70 million with only one bond deal transacted.

Primary Auction: The yield on the FXD 3/2014/2 rose to 11.767%, whilst the FXD 1/2014/10 also rose marginally to 12.886% with good subscription on both bond offers.

Money Market: The interbank rate rose to a record high of 11.01%. The money market remained tight as
companies paid out taxes to the government coupled with investor’s channeling funds into the primary bond auction held yesterday. The Kenyan Shilling (KES) shed against the US Dollar (USD) by 0.47% to KES. 96.80, despite U.S producing less-than-expected crude oil inventory results; that fared adversely for the economy.

Upcoming Auctions

• 20th May 2015 – KES 3.0Bn 182 & KES 4.0BN 364-day T-bills

• 21st May 2015 – KES 1 Bn 91 day T-bills