Kenya Treasury bonds · auction of 16 January 2023
Kenya bond auction, 16 January 2023: FXD1/2020/005 at 12.879%
The Central Bank of Kenya's bond auction dated 16 January 2023 was a re-opening of FXD1/2020/005 and FXD1/2022/015.
Bids came to KES 41.6bn against KES 50.0bn on offer (83% subscribed), and the Treasury accepted KES 31.5bn.
FXD1/2020/005 cleared at 12.879%, against a 11.667% coupon, with 2.3 years to maturity. Its previous sale, on 10 January 2022, priced at 11.234%, so the yield is up 164 basis points.
FXD1/2022/015 cleared at 14.186%, against a 13.942% coupon, with 14.2 years to maturity. Its previous sale, on 19 September 2022, priced at 13.983%, so the yield is up 20 basis points.
What this means for KES 100,000 of FXD1/2020/005
Worked from the published result · information, not advice
KES 4,958 every six months, after tax, for 2.3 years
At this auction KES 100,000 of face value cost about KES 99,846 (price 99.846 per 100), and the yield that implies is 12.88% a year. The coupon is 11.67%: KES 11,667 a year on KES 100,000 of face value, paid in two halves, KES 9,917 after 15% withholding tax.
Held to maturity (2025-05-05), that is about KES 22,807 in coupons, plus KES 154 gain between what you paid and the KES 100,000 repaid; roughly KES 22,961 in all after tax.
Sold before maturity, the price moves with rates: if yields rise, the bond is worth less; if they fall, more. The Central Bank’s minimum bid is KES 50,000. Compare with bills, funds and deposits after tax →
Results
By bond
| Bond | Sale | Yield | Coupon | Years left | Bids | Accepted | Price /100 |
|---|---|---|---|---|---|---|---|
| FXD1/2020/005 | reopening | 12.879% | 11.667% | 2.3 | KES 27.62bn | KES 24.35bn | 99.846 |
| FXD1/2022/015 | reopening | 14.186% | 13.942% | 14.2 | KES 14.01bn | KES 7.16bn | 101.681 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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