By pursuing QQE, the Bank aims at decreasing expected real interest rates through exerting downward pressure on nominal interest rates across a wide range of maturities and raising peoples’ inflation expectations toward 2 percent (Chart 6).
These instruments can be discounted at the Central Bank and bonds are tradeable on the Nairobi Stock Exchange. It is also useful to highlight other critical investment products that fall under the purview of the Capital Markets Authority (CMA). Of particular interest are equity securities and unit trusts. The Nairobi Stock Exchange (NSE) offers equity (shares) and fixed income (debt) securities.