Kenya Treasury bonds · auction of 2 October 2023
Kenya bond auction, 2 October 2023: FXD1/2023/002 at 17.454%
The Central Bank of Kenya's bond auction dated 2 October 2023 was a tap sale of FXD1/2016/010 and FXD1/2023/002.
Bids came to KES 3.4bn against KES 15.0bn on offer (23% subscribed), and the Treasury accepted KES 3.4bn.
FXD1/2016/010 cleared at 17.927%, against a 15.039% coupon, with 2.9 years to maturity. Its previous sale, on 18 September 2023, priced at 17.927%, so the yield is unchanged.
FXD1/2023/002 cleared at 17.454%, against a 16.972% coupon, with 1.9 years to maturity. Its previous sale, on 18 September 2023, priced at 17.454%, so the yield is unchanged.
What this means for KES 100,000 of FXD1/2023/002
Worked from the published result · information, not advice
KES 7,213 every six months, after tax, for 1.9 years
At this auction KES 100,000 of face value cost about KES 101,150 (price 101.150 per 100), and the yield that implies is 17.45% a year. The coupon is 16.97%: KES 16,972 a year on KES 100,000 of face value, paid in two halves, KES 14,426 after 15% withholding tax.
Held to maturity (2025-08-18), that is about KES 27,095 in coupons, plus KES -1,150 loss between what you paid and the KES 100,000 repaid; roughly KES 25,945 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 |
|---|---|---|---|---|---|---|---|
| FXD1/2016/010 | tap | 17.927% | 15.039% | 2.9 | KES 0.81bn | KES 0.76bn | 95.387 |
| FXD1/2023/002 | tap | 17.454% | 16.972% | 1.9 | KES 2.63bn | KES 2.61bn | 101.150 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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