Kenya's short-term borrowing costs jumped at an auction on Wednesday and were seen climbing further as the uncertain outcome of this week's presidential vote prompted investors to price in more risk.
"Due to the uncertainty on the release of the elections results, investors will demand high interest rates to compensate the risk," Alex Muiruri, a trader at African Alliance said.
Yields on government securities would continue edging higher next week, said Muiruri, although he forecast demand would remain strong.
Bids worth Sh10.9 billion were received for the Sh6 billion worth of one-year debt offered, of which the Central Bank accepted Sh6.88 billion shillings.
The bank received bids totalling Sh4.6 billion for Sh4 billion of six-month bills, accepting Sh3.99 million shillings.