Very strange dealings are happening in our bond markets. I recently came across a letter by the Central Bank of Kenya’s Director of Financial Markets, David Luusa, to the CEO of the Capital Markets Authority, asking the market regulator to investigate recent bond trades between some brokers and market players and the National Social Security Fund (NSSF).
The Central Bank says, in this letter, that it had conducted an analysis of these trades that revealed the following. First, instances where NSSF was buying bonds at significantly higher than the market average.
