Kenya Treasury Bill Demand Surges as Inflation Shock Fuels Rate-Hike Bets Ahead of CBK Decision

Kenya's money markets are signaling growing expectations of higher interest rates after Treasury bill demand surged to more than double the amount on offer, days before the Central Bank of Kenya's policy meeting. The strong investor appetite, rising yields across all maturities, and a sharp jump in inflation to a two-year high have intensified speculation that policymakers may be forced to tighten monetary policy despite signs of slowing economic growth.