The National Treasury is set to move away from issuing short-dated bonds in the coming months, indicating potential drops in interest rates on domestic debt in line with lower Central Bank of Kenya (CBK) indicative lending rates.
Over the past two years, the government has largely relied on a series of short-term bonds of two to five years and reopening of paper nearing maturity to finance the budget deficit, wary of committing to longer-term debt at high interest rates.
