Kenya Treasury bonds · auction of 26 June 2023
Kenya bond auction, 26 June 2023: FXD1/2023/003 at 14.228%
The Central Bank of Kenya's bond auction dated 26 June 2023 was a tap sale of FXD1/2023/003.
Bids came to KES 18.6bn against KES 15.0bn on offer (124% subscribed), and the Treasury accepted KES 18.6bn.
FXD1/2023/003 cleared at 14.228%, against a 14.228% coupon, with 2.9 years to maturity. Its previous sale, on 29 May 2023, priced at 14.228%, so the yield is unchanged.
What this means for KES 100,000 of FXD1/2023/003
Worked from the published result · information, not advice
KES 6,047 every six months, after tax, for 2.9 years
At this auction KES 100,000 of face value cost about KES 101,599 (price 101.599 per 100), and the yield that implies is 14.23% a year. The coupon is 14.23%: KES 14,228 a year on KES 100,000 of face value, paid in two halves, KES 12,094 after 15% withholding tax.
Held to maturity (2026-05-11), that is about KES 34,767 in coupons, plus KES -1,599 loss between what you paid and the KES 100,000 repaid; roughly KES 33,168 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 |
|---|---|---|---|---|---|---|---|
| FXD1/2023/003 | tap | 14.228% | 14.228% | 2.9 | KES 18.56bn | KES 18.55bn | 101.599 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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