Kenya Fixed Income Market Update – Week Ending 28th March 2025

T-Bills Undersubscribed
For the first time in seven weeks, Treasury Bills were undersubscribed, with the overall subscription rate falling sharply to 61.4%, down from 129.0% the previous week.

• 91-day T-bill: Bids worth Kshs 2.8 bn vs. Kshs 4.0 bn on offer → 69.8% subscription rate (up from 43.2%).
• 182-day T-bill: Subscription dropped significantly to 17.1% from 84.0%.
• 364-day T-bill: Also fell to 102.5%, down from 208.2%.

Government Accepted:
Kshs 14.5 bn of Kshs 14.7 bn in bids → Acceptance rate: 98.4%

T-Bill Yields Continued Downward Trend

• 91-day: ↓ 4.9 bps to 8.8%
• 182-day: ↓ 2.8 bps to 9.1%
• 364-day: ↓ 4.9 bps to 10.4%

💱 Currency Update

• The Kenyan Shilling appreciated marginally by 6.0 bps to close the week at Kshs 129.3/USD, from Kshs 129.4 the previous week.
• YTD, the shilling has depreciated slightly by 0.8 bps, compared to a 17.4% appreciation in 2024.

💰 Forex Reserves

• FX reserves dipped by 0.5% to USD 10.0 bn, equivalent to 5.1 months of import cover – still well above the statutory requirement of 4.0 months.

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