Kenya Bond Market Update: 10-Aug-2023

Published on
November 29, 2023

MPC Things – The Monetary Policy Committee (MPC) of the CBK met yesterday and decided to retain the Central Bank Rate (CBR) at 10.50%. Together with this decision, the MPC announced the following measures:

·         Net domestic borrowing target reduced to KES 316Bn from KES 586.5Bn

·         Interbank rate to closely track the CBR. This will be done by introducing an interest rate corridor around the CBR set at +/-250bps. This should enhance monetary policy transmission by giving the CBR more relevance.

·         Improved access to the Discount Window by reducing the applicable interest rate from the current 600bps above CBR to 400bps above CBR.

·         Link to the CBK Governor’s MPC briefing that is beginning shortly: The MPC Statement has also been attached for your perusal.

There was another significant drop of 266bps in the interbank rate in yesterday’s trading session. Below is a snapshot of what is at play within the secondary market for your consideration. Happy hunting!

Kenya Bond Updates

Attached are the bond positions available today, the MPC Statement and the bond auction prospectus for August 2023.

  1. Bond Positions
  2. MPC Statement
  3. Bond Auction Prospectus for August 2023