Interest rates for Kenyan government securities are forecast to decline following the government’s decision to significantly curtail domestic borrowing, aiming to address budget shortfalls. The central bank declined 33.9 bln shillings (KES) in bids after investors sought over 18% interest for a five-year bond recently up for sale. The banks’ bid refusal is linked to the treasury’s strategy to decrease the domestic borrowing goal from KES 586.5 bln to 316 bln for this fiscal year, a change anticipated to reduce interest rates.