Kenyan Shilling drops further against the US Dollar

Secondary Market: Trading in the secondary market declined as bond turnover shrank by 59% to KES 208 million amid restrained liquidity in the money market.

At the CBK MPC meeting held yesterday member’s voted to hold the CBR rate steady at 8.50% in order to continue anchoring inflationary expectations.

Money Market: The interbank rate yesterday stood at 10.64% as tight liquidity spurred interbank borrowing. Meanwhile, yields on the 182-day and 364-day paper edged up marginally during yesterday’s auction whilst subscription levels dropped considerably. The Kenyan Shilling (KES) failed to rally against the US Dollar (USD), dropping 0.11% to 95.15 as sentiments remained suppressed.

Upcoming Auctions

• 6th May 2015 – KES 3.0Bn 182 & KES 4.0BN 364-day T-bills

• 7th May 2015 – KES 1 Bn 91 day T-bills