An increase in interest rates in global markets has made emerging market assets less attractive, with investors coy to lend to the Kenyan government, exposing the new administration to a funding headache.

For the fourth consecutive week in September, Treasury Bills in Kenya performed poorly, with a record low performance rate of 38.8% in the last auction of 30 September 2022.

This saw Central Bank of Kenya (CBK) receive bids totalling just KSh9.3bn, compared to an advertised amount of KSh24bn.

Since the beginning of this financial year in July, the 91-day Treasury Bill interest rates have increased on average by 0.704% to reach 8.47% at the end September.

The 182-day and 364-day Treasury Bill rates bear a similar upward trend.

Source: The African Report