So where did CBK get the money in first place. If from reserves deposited by local banks, shouldn't the eurobond money have been shipped in by now to replenish the reserves. Someone pliz explain like a 2 year old

What/whose bond??

For purposes of the general public information, we shall again clarify some of the key issues raised in his statement

as follows:
1. The allegation that US$ US$ 999 million (Kshs. 88.5 billion) is missing

Response:

The standard procedure for this transaction is for the Government to sell the dollars received to CBK which it retains as its own international reserves and simultaneously credits the Government Account at the CBK with the equivalent in Kenya Shillings.
In this particular case the Kenya Shillings Equivalent of Kshs. 88.46 billion (US$ 999 Million) was credited in the CBK Sovereign Bond Account No.1000212764 at the Central Bank of Kenya on the 8th September, 2014.

At the same time, the CBK’s international reserves were increased by the equivalent in dollars of US$ 999
million at the CBK Account held with the Federal Reserve Bank in New York.

This clearly demonstrates that there were no funds lost because the CBK forex reserves increased and the Government received its money.

The SWIFT transfer documents and the bank statements from the JP Morgan Chase bank and Citibank relating to these transactions were shared with Parliament, Auditor General, investigators and the media as well as posted in the National Treasury website and no information was redacted. As indicated earlier it is
evident to well-meaning Kenyans that the money was received at the CBK.

Seen the explanation @ muchr. My quiz is where did CBK get the 88b ksh denominations in first place. Did they print it, or was it the normal reserve held for other banks