Kenya Treasury bonds · auction of 22 January 2024
Kenya bond auction, 22 January 2024: FXD1/2024/003 at 18.385%
The Central Bank of Kenya's bond auction dated 22 January 2024 was a tap sale of FXD1/2023/005 and FXD1/2024/003.
Bids came to KES 11.9bn against KES 15.0bn on offer (79% subscribed), and the Treasury accepted KES 11.8bn.
FXD1/2023/005 cleared at 18.770%, against a 16.844% coupon, with 4.5 years to maturity. Its previous sale, on 15 January 2024, priced at 18.770%, so the yield is unchanged.
FXD1/2024/003 cleared at 18.385%, against a 18.385% coupon, with 3.0 years to maturity. Its previous sale, on 15 January 2024, priced at 18.385%, so the yield is unchanged.
What this means for KES 100,000 of FXD1/2024/003
Worked from the published result · information, not advice
KES 7,814 every six months, after tax, for 3.0 years
At this auction KES 100,000 of face value cost about KES 100,339 (price 100.339 per 100), and the yield that implies is 18.39% a year. The coupon is 18.39%: KES 18,385 a year on KES 100,000 of face value, paid in two halves, KES 15,628 after 15% withholding tax.
Held to maturity (2027-01-11), that is about KES 46,423 in coupons, plus KES -339 loss between what you paid and the KES 100,000 repaid; roughly KES 46,084 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 |
|---|---|---|---|---|---|---|---|
| FXD1/2023/005 | tap | 18.770% | 16.844% | 4.5 | KES 2.55bn | KES 2.42bn | 94.643 |
| FXD1/2024/003 | tap | 18.385% | 18.385% | 3.0 | KES 9.31bn | KES 9.34bn | 100.339 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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