By playing close attention to developments in both local and overseas financial markets we can innovate ways that will place our markets at the forefront of the emerging markets. Over the past decade, Kenya has witnessed tremendous growth and diversification of the financial system especially in the fixed income securities market. This began in 2001 when the Central Bank re-launched the Treasury Bonds programme.
At that time the proportion of Treasury Bonds to Bills was heavily skewed in favour of Treasury Bills at the ratio of 1 to 3 (24% bonds to 76% bills). The aim of the programme re-launch was to restructure the domestic debt portfolio to lengthen the maturity profiles. In 2001, a consultative forum was set up comprising of Key players from the financial sector.