Kenya Treasury bonds · auction of 8 April 2024
Kenya bond auction, 8 April 2024: FXD1/2023/005 at 18.410%
The Central Bank of Kenya's bond auction dated 8 April 2024 was a tap sale of FXD1/2023/005 and FXD1/2024/010.
Bids came to KES 47.8bn against KES 25.0bn on offer (191% subscribed), and the Treasury accepted KES 45.8bn.
FXD1/2023/005 cleared at 18.410%, against a 16.844% coupon, with 4.3 years to maturity. Its previous sale, on 25 March 2024, priced at 18.410%, so the yield is unchanged.
FXD1/2024/010 cleared at 16.519%, against a 16.000% coupon, with 9.9 years to maturity. Its previous sale, on 25 March 2024, priced at 16.519%, so the yield is unchanged.
What this means for KES 100,000 of FXD1/2023/005
Worked from the published result · information, not advice
KES 7,159 every six months, after tax, for 4.3 years
At this auction KES 100,000 of face value cost about KES 99,299 (price 99.299 per 100), and the yield that implies is 18.41% a year. The coupon is 16.84%: KES 16,844 a year on KES 100,000 of face value, paid in two halves, KES 14,317 after 15% withholding tax.
Held to maturity (2028-07-10), that is about KES 60,915 in coupons, plus KES 701 gain between what you paid and the KES 100,000 repaid; roughly KES 61,616 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 | 18.410% | 16.844% | 4.3 | KES 35.59bn | KES 33.95bn | 99.299 |
| FXD1/2024/010 | tap | 16.519% | 16.000% | 9.9 | KES 12.20bn | KES 11.90bn | 98.098 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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