Kenya Treasury bonds · auction of 13 May 2024
Kenya bond auction, 13 May 2024: FXD1/2024/010 at 16.227%
The Central Bank of Kenya's bond auction dated 13 May 2024 was a tap sale of FXD1/2024/010.
Bids came to KES 7.1bn against KES 15.0bn on offer (47% subscribed), and the Treasury accepted KES 7.0bn.
FXD1/2024/010 cleared at 16.227%, against a 16.000% coupon, with 9.8 years to maturity. Its previous sale, on 6 May 2024, priced at 16.227%, so the yield is unchanged.
What this means for KES 100,000 of FXD1/2024/010
Worked from the published result · information, not advice
KES 6,800 every six months, after tax, for 9.8 years
At this auction KES 100,000 of face value cost about KES 100,993 (price 100.993 per 100), and the yield that implies is 16.23% a year. The coupon is 16.00%: KES 16,000 a year on KES 100,000 of face value, paid in two halves, KES 13,600 after 15% withholding tax.
Held to maturity (2034-03-13), that is about KES 133,710 in coupons, plus KES -993 loss between what you paid and the KES 100,000 repaid; roughly KES 132,717 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 |
|---|---|---|---|---|---|---|---|
| FXD1/2024/010 | tap | 16.227% | 16.000% | 9.8 | KES 7.11bn | KES 7.03bn | 100.993 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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