Nairobi, June 10 -- Bond investors have for the first time in eight months demanded an interest rate above 14 percent to lend to government in the bonds market, as high inflation erodes returns in the fixed income market.

In last week's bond auction, investors asked for a return of 14.23 percent on a reopened 25-year bond, compared to its coupon of 13.4 percent, and 13.31 percent on a 15-year paper, compared to its coupon of 12.75 percent.

This was the first time the yield demand on a bond rose above 14 percent since the sale of another reopened 25-year paper in September 2025.

Reopened bonds normally come with an existing coupon or actual interest rate that was set when the bonds were floated for the first time in the market.

But whe...