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FX

Kenya Treasury bonds · auction of 8 July 2024

Kenya bond auction, 8 July 2024: FXD1/2023/002 at 17.122%

The Central Bank of Kenya's bond auction dated 8 July 2024 was a tap sale of FXD1/2023/002.

Bids came to KES 0.5bn against KES 20.0bn on offer (2% subscribed), and the Treasury accepted KES 0.5bn.

FXD1/2023/002 cleared at 17.122%, against a 16.972% coupon, with 1.1 years to maturity. Its previous sale, on 24 June 2024, priced at 17.122%, 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 1.1 years

At this auction KES 100,000 of face value cost about KES 106,319 (price 106.319 per 100), and the yield that implies is 17.12% 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 16,036 in coupons, plus KES -6,319 loss between what you paid and the KES 100,000 repaid; roughly KES 9,717 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

BondSaleYieldCouponYears leftBidsAcceptedPrice /100
FXD1/2023/002tap17.122%16.972%1.1KES 0.49bnKES 0.49bn106.319

Source: Central Bank of Kenya result notice · the PDF these figures were read from

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