Kenya Treasury bonds · auction of 16 October 2023
Kenya bond auction, 16 October 2023: FXD1/2023/002 at 17.736%
The Central Bank of Kenya's bond auction dated 16 October 2023 was a re-opening of FXD1/2023/002 and FXD1/2023/005.
Bids came to KES 12.3bn against KES 35.0bn on offer (35% subscribed), and the Treasury accepted KES 6.3bn.
FXD1/2023/002 cleared at 17.736%, against a 16.972% coupon, with 1.8 years to maturity. Its previous sale, on 2 October 2023, priced at 17.454%, so the yield is up 28 basis points.
FXD1/2023/005 cleared at 17.992%, against a 16.844% coupon, with 4.7 years to maturity. Its previous sale, on 28 August 2023, priced at 17.954%, so the yield is up 4 basis points.
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 1.8 years
At this auction KES 100,000 of face value cost about KES 101,376 (price 101.376 per 100), and the yield that implies is 17.74% 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 26,542 in coupons, plus KES -1,376 loss between what you paid and the KES 100,000 repaid; roughly KES 25,167 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 |
|---|---|---|---|---|---|---|---|
| FXD1/2023/002 | reopening | 17.736% | 16.972% | 1.8 | KES 6.51bn | KES 4.83bn | 101.376 |
| FXD1/2023/005 | reopening | 17.992% | 16.844% | 4.7 | KES 5.79bn | KES 1.48bn | 100.555 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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