INTRODUCTIONContext of the StudyFinancial markets could be said to be a collection of buyers and sellers of financial instruments which include, but are not limited to, stocks, bonds, commodities, currencies and derivatives. They are typically characterized by the existence of direct pricing based on market forces, basic rules and regulations that limit participation based on certain established criteria such as the amount of money held, geographic location, and even the profession of the participant. These financial markets are located in almost every country in the world. Distinctive factors are the size and complexity of financial markets located in different countries. The NYSE, for example, could transact trillions of dollars per day, while the infant-stage RSE could move very low-volume transaction values ​​in one day: $70,000 (RSE report dated 05/12/2014). Transparency of information is critical to promoting investor confidence in any financial market. It helps build an efficient financial market where security prices are driven by market forces. This also helps curb market manipulations, insider trading and fraudulent transactions. Many arguments have been put forward as motivations for the development of financial markets. Good financial markets offer alternative sources of domestic debt financing. This is because over-reliance on bank loans for financing exposes a financial system to risks in the event of a banking system collapse. This can be solved by having an efficient internal capital market (bond market), which offers an alternative in case banks cannot offer credit lines. Developed financial markets also help reduce the cost of capital. This is true as individuals would incur higher financing costs through bank loans as op...... middle of paper ......rt also predicts that the figure will rise to just over 30% by 2030 and further to almost 40% by 2050. This increase can be attributed to increased local and foreign investments to finance large-scale infrastructure projects and the narrowing of the gap between emerging and developed markets (OICV-IOSCO, 2011). Global stock markets also surged after the stormy weather crisis of the financial crisis. While developed market stock markets are still recovering, the speed of development of emerging market stock markets has been unprecedented and has led to the structures of these exchanges and capital flows from developed markets as investors are no longer limited by national borders. (IMF WP 08/32)STOCK MARKETSBOND MARKETSTOCK AND BOND MARKETS IN KENYARELATIONSHIP BETWEEN BOND AND EQUITY RESEARCH PROBLEMWe are talking about the average maturity profile for all domestic bonds, which in some months is currently 5 years