Lower bond price leaves mixed signals in market

That also helped the average deposit rate fall from five per cent in January to 4.54 per cent in the first week of August, according the Central Bank of Kenya.

Banking executives however said the deposit rate dropped to below four per cent with the aggressive cuts in lending rates since April.

Compared to last year when Kenya’s capital markets generated a Sh36 billion investment opportunity for those with cash through corporate bonds, only a private placement by cement maker Athi River Mining of Sh1.2 billion came through in the first half on 2010.