Rates seen rising in Q1 as State eyes domestic debt

[B]Control C+V

Monday Jan 4 2016
Interest rates are tipped to rise in the first quarter of 2016 as the government turns to the domestic market to bridge its budget deficit.

Investors are, therefore, opting for the shortest tenure government debt ahead of the anticipated interest rate increases, looking to have cash in hand to take advantage of the higher rates in the short term.

For bank loan borrowers, rising Treasury bill interest rates may translate into higher loan rates since they are used to calculate the Kenya Banks Reference Rate.

In the primary treasuries market, investors have been opting heavily for the 91-day Treasury bills as opposed to the 182-day and 364-day options.

The interest rates are already rising for the T-bills, with the 91-day paper rate going up from 9.2 per cent to 10.8 per cent this month. The rate on the 182-day paper has gone up from 10.6 to 12.7 per cent, while that of the one-year bill has risen to 13.2 from 12.2 per cent.

External factors are also pointing to higher interest rates in the coming year, the biggest of which is the increase in the US Federal Reserve rate mid December 2015.


Talkers cant comprehend such stuff. Stories za DF kwa settings ndizo wanapenda.


Wapi ule mtu wa 3k & 30k a month

1 Like

Good. Time for people to utilize the imminent opportunity.

[QUOTE="Okiya Thanks for the update, actually most guys took the one for 90 days na zina expire this month.


we ndo wapenda DF.

Good info bro. I’m intending to visit those bank guys who live near vault soon bt i have to rethink.

Good info bro.


Itabidi tuuze mayai boiro na mahindi