Kenya's 91-day T-bill yield rise to 8.962 pct

NAIROBI, Oct 11 (Reuters) - The weighted average yield on benchmark Kenyan 91-day Treasury bills rose for the fourth straight week to 8.962 percent at the auction on Thursday, from 8.439 percent last week, the central bank said.

The central bank received 2.5 billion shillings ($29.4 million) in bids for the 4 billion shillings worth of three-month paper on offer and accepted 1.3 billion shillings.

Yields on Kenyan government paper have risen over the last four weeks on poor demand, as commercial banks favour repurchase agreements, which are offering higher returns than the debt market at above 10 percent.

($1 = 85.1000 Kenyan shillings)

(Reporting by Kevin Mwanza; Editing by James Macharia)

(( +254 20 2224717))

Keywords: KENYA TBILL/