The Central Bank of Kenya (CBK) rejected Sh31.2 billion in offers from bond investors in the second auction of September after they demanded higher returns amid fears of renewed inflation pressure due to an escalation of the Middle East conflict.
The auction was made amid rising tensions in the Middle East after Houthi rebels in Yemen attacked the Red Sea shipping route and a key oil pipeline in Saudi Arabia, effectively crippling supplies from the world’s biggest producer and a key source of fuel for Kenya.
