Interbank Market Sees 105% Surge in Activity Amid Easing Treasury Yields

Interbank lending surged during the week, with the average traded volumes rising by 104.79% w/w to KES 14.53bn, from KES 7.10bn the prior week. Consequently, the number of interbank deals increased by 87.50% w/w to 30.00.

The Kenya Shilling Overnight Interbank Average (KESONIA) remained largely stable (+1.25bps w/w) at an average of 9.25%. Notably, no actor utilized the CBK borrowing window in the week.

Demand for Treasury bills softened slightly in the week ended 24th October 2025, with overall subscription inching lower to 105.9% from 114.7% in the previous week.

Investors submitted bids worth KES 25.38bn, of which the fiscal agent accepted 99.9%. This quantum was lower than the value of maturities, resulting in a net repayment of KES 20.11bn.

Bucking recent trends, the 91-day paper led the performance, posting a subscription rate of 325.0 (much higher than the 91.0% recorded in the week prior).

The 182-day paper followed, with its subscription rate at 70.3% vs 25.5% in the week prior, while the 364-day paper garnered a much lower subscription rate of 53.7% vs 213.5% last week.

The weighted average rates on accepted bids sustained their easing trend in the week, with the 91-day, 182-day, and 364-day rates narrowing by 3.01bps w/w, 4.41bps w/w, and 1.81bps w/w to 7.83%, 7.87% and 9.35%, respectively.

Read Also: Nairobi Bourse Ends Week On A High As Market Activity Surges 184%, Driven By Safaricom And Banking Stocks