The Central Bank of Kenya (CBK) rejected bids worth Sh22.5 billion in the March Treasury bond sale after investors demanded higher rates amid concerns over inflation and a weakening shilling due to rising global commodity prices.
Three bonds –a five-year, 15-year and 25-year paper— sought to raise a total of Sh50 billion but attracted bids of Sh40.9 billion. The government’s fiscal agent took only Sh18.45 billion, rejecting most of the bids including those that sought interest rates above 14 percent.
