The Central Bank of Kenya reported a 40.8 percent decline in secondary market bond trading for the week ending October 8, 2026. The CBK’s Weekly Bulletin, released on October 9, noted that despite a Ksh75.4 billion bid in the latest Treasury bill auction, trading activity slowed significantly.
Investors submitted bids worth Ksh75.4 billion during the Treasury bill auction, indicating continued demand for short-term government debt. However, the sharp drop in bond trading suggests a slowdown in secondary market activity, possibly reflecting investor caution or shifting market dynamics. The CBK did not provide an immediate explanation for the decline, though it emphasized the importance of monitoring market trends.
This marks a notable shift from previous weeks, where bond trading had remained relatively stable. The decline comes amid broader economic uncertainties, including inflationary pressures and global financial market volatility. The CBK has been closely monitoring liquidity conditions and has taken steps to ensure market stability. Analysts suggest that the drop may be linked to a combination of factors, including reduced institutional participation and a more conservative investment approach by market participants.
