Kenya Treasury bonds · auction of 2 September 2024
Kenya bond auction, 2 September 2024: IFB1/2023/017 at 17.728%
The Central Bank of Kenya's bond auction dated 2 September 2024 was a tap sale of IFB1/2023/017.
Bids came to KES 35.2bn against KES 15.0bn on offer (235% subscribed), and the Treasury accepted KES 32.0bn.
IFB1/2023/017 cleared at 17.728%, against a 14.399% coupon, with 15.5 years to maturity. Its previous sale, on 19 August 2024, priced at 17.728%, so the yield is unchanged.
What this means for KES 100,000 of IFB1/2023/017
Worked from the published result · information, not advice
KES 7,200 every six months, tax-free, for 15.5 years
At this auction KES 100,000 of face value cost about KES 91,015 (price 91.015 per 100), and the yield that implies is 17.73% a year. The coupon is 14.40%: KES 14,399 a year on KES 100,000 of face value, paid in two halves, with no withholding tax on an infrastructure bond.
Held to maturity (2040-02-20), that is about KES 222,697 in coupons, plus KES 8,985 gain between what you paid and the KES 100,000 repaid; roughly KES 231,682 in all.
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 |
|---|---|---|---|---|---|---|---|
| IFB1/2023/017 | tap | 17.728% | 14.399% | 15.5 | KES 35.19bn | KES 32.02bn | 91.015 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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