Kenya Fixed Income Market Update – 12th September 2025

T-Bills Primary Auction

During the week, T-bills were oversubscribed for the fourth consecutive week, with the overall subscription rate coming in at 161.5%, up from 141.2% the previous week.

• 91-day paper: Remained the most attractive, receiving bids worth Kshs 15.4 bn against the offered Kshs 4.0 bn, translating to a subscription rate of 385.2% (up from 146.7% the previous week).
• 182-day paper: Subscription fell to 31.3% from 49.1% the previous week.
• 364-day paper: Subscription declined slightly to 202.3% from 231.0% the previous week.

The government accepted Kshs 28.9 bn out of Kshs 38.7 bn received, translating to an acceptance rate of 74.6%.

Yields were on a downward trajectory, with the 364-day paper recording the largest decline of 3.1 bps to 9.55% (from 9.58%). The 91-day and 182-day papers declined by 1.5 bps and 1.4 bps to 7.97% and 8.02%, from 7.99% and 8.03% respectively.

Liquidity

Money market liquidity eased marginally, as the average interbank rate fell by 7.7 bps to 9.46% from 9.53% the previous week.

• Average interbank volumes traded rose 55.0% to Kshs 12.7 bn, from Kshs 8.2 bn recorded the previous week.

Kenya Eurobonds

Yields on Kenya’s Eurobonds were on a downward trend, with the 13-year Eurobond issued in 2021 recording the sharpest decline of 67.9 bps to 8.4% from 9.1% the previous week.

Kenya Shilling

The Kenya Shilling remained stable, depreciating marginally by 0.04 bps to close the week at Kshs 129.2/USD, unchanged from the previous week.

• Year-to-date, the Shilling has appreciated by 0.1% against the dollar (compared to a 17.6% appreciation in 2024).
• Forex reserves rose 2.5% to USD 11.2 bn from USD 10.9 bn, equivalent to 4.9 months of import cover, above both the statutory minimum (4.0 months) and the EAC convergence criterion (4.5 months).

Weekly Highlights

Kenya’s FY’2025/26 Annual Borrowing Plan (ABP)

The National Treasury unveiled the Annual Borrowing Plan (ABP) for FY’2025/26, outlining how the government will finance its fiscal deficit, refinance maturing debt, and maintain debt sustainability in line with the 2025 Medium-Term Debt Management Strategy (MTDS).

• This forms part of Kenya’s broader fiscal consolidation agenda, aimed at reducing the budget deficit, slowing debt accumulation, and freeing fiscal space for priority investments under MTP IV and the Bottom-Up Economic Transformation Agenda (BETA).

Fuel Price Review (15th Sept – 14th Oct 2025)

The Energy and Petroleum Regulatory Authority (EPRA) announced a marginal reduction in fuel prices:

• Super Petrol: Kshs 184.5 (↓ Kshs 0.8 / 0.4%)
• Diesel: Kshs 171.5 (↓ Kshs 0.1 / 0.1%)
• Kerosene: Kshs 154.8 (↓ Kshs 0.8 / 0.5%)

Other notable trends:

• Average landing costs per cubic metre declined for Super Petrol (↓0.5%), Diesel (↓3.3%), and Kerosene (↓2.9%).
• The Kenya Shilling remained stable against the US Dollar, depreciating slightly by 3.1 bps compared to July 2025 levels.

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