Fixed Income & Banking
Kenya Markets — Week ending 23 May 2026
T-bill yields plateau (91-day 8.39%, 364-day 8.59%), the 10-year bond holds at 11.52%, the May bond re-opening drew healthy demand at KES 80bn, and most bank fixed-deposit rates lag T-bills.
The Read
T-bill yields steady: 91-day at 8.39%, 182-day at 8.21%, 364-day at 8.59% — CBK auction well-bid as rates plateau after 10 consecutive CBR cuts.
10-Year bond stable: Yield held at 11.52%. May bond re-opening targeting KES 80 billion drew healthy subscription.
Deposit rates lag: NCBA leads at 8.64% but most banks offer well below T-bill yields, narrowing the case for bank deposits.
Key Metrics
91-Day T-Bill: 8.39% — Issue 2683 | Next auction 28 May
182-Day T-Bill: 8.21% — Issue 2657 | Next auction 28 May
364-Day T-Bill: 8.59% — Issue 2612 | Next auction 28 May
10Y Bond Yield: 11.52% — Steady
Kenya Government Yield Curve
Source: Central Bank of Kenya auction results, CBK weekly bulletin. Data as at 23 May 2026.
Treasury Bond Issues — Active Re-openings
| Bond | Remaining Tenor | Coupon | Maturity | Target |
|---|---|---|---|---|
| FXD1/2012/020 | 6.6 years | 12.000% | 01 Nov 2032 | — |
| FXD1/2019/020 | 13.0 years | 12.873% | 21 Mar 2039 | — |
| FXD1/2021/025 | 20.1 years | 13.924% | 09 Apr 2046 | — |
Source: CBK bond prospectus, May 2026. Aggregate offer: KES 80 billion.
Bank Fixed Deposit Rate Comparison
Source: Published bank rate sheets, verified Mar 2026. Subject to 15% WHT. KDIC insured up to KES 500,000.
Analysis: What Moved & Why
The CBK Friday auction saw strong demand across all three T-bill tenors, with aggregate bids exceeding offer amounts. The 91-day came in at 8.39% (issue 2683/091), the 182-day at 8.21% (issue 2657/182) and the 364-day at 8.59% (issue 2612/364) as liquidity remained comfortable following the MPC's decision to hold the CBR at 8.75%. The next auction is scheduled for 28 May 2026. The 10-year benchmark held steady at 11.52%.
The May bond re-opening targeting KES 80 billion drew healthy subscription, with the 20-year tranche (13.924% coupon) attracting particular interest from pension funds seeking duration. On the deposit side, NCBA continues to lead with 8.64% on fixed deposits, though the gap with T-bill yields narrows the incentive for bank deposits versus government paper.
What It Means For You
Savers: With T-bill yields stabilising around 8.2–8.6% and the CBR on hold, government paper remains an attractive low-risk option. The 364-day T-bill at 8.59% offers a meaningful real return above April's 5.6% inflation. Consider Treasury Mobile Direct for direct access to primary auctions.
Fixed deposit holders: Most banks continue to offer below-market rates. Only NCBA and I&M are competitive with T-bills. If your bank offers less than 6%, compare against MMFs and T-bills.
The Week Ahead
Friday 30 May: CBK T-bill auction — watch for any further yield compression.
Bond calendar: Next primary bond issuance expected in June; watch for the prospectus announcement.
Global link: Fed June FOMC decision will influence global rate expectations and KES yield differentials.
Disclaimer
This content is produced by Serrari Group for information and educational purposes only. It is not investment, legal or tax advice and does not consider your individual circumstances. Figures are sourced as indicated and were accurate as at the stated date; markets move and past performance is not a guarantee of future results. Always do your own research and consider professional advice before investing.