Kenya Treasury bonds · auction of 23 September 2024
Kenya bond auction, 23 September 2024: FXD1/2024/010 at 16.870%
The Central Bank of Kenya's bond auction dated 23 September 2024 was a re-opening of FXD1/2016/020 and FXD1/2024/010.
Bids came to KES 22.6bn against KES 30.0bn on offer (75% subscribed), and the Treasury accepted KES 19.3bn.
FXD1/2016/020 cleared at 17.285%, against a 14.000% coupon, with 11.9 years to maturity. Its previous sale, on 26 September 2016, priced at 14.601%, so the yield is up 268 basis points.
FXD1/2024/010 cleared at 16.870%, against a 16.000% coupon, with 9.5 years to maturity. Its previous sale, on 22 July 2024, priced at 16.592%, so the yield is up 28 basis points.
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 9.5 years
At this auction KES 100,000 of face value cost about KES 95,952 (price 95.952 per 100), and the yield that implies is 16.87% 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 128,758 in coupons, plus KES 4,048 gain between what you paid and the KES 100,000 repaid; roughly KES 132,806 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 |
|---|---|---|---|---|---|---|---|
| FXD1/2016/020 | reopening | 17.285% | 14.000% | 11.9 | KES 9.25bn | KES 7.71bn | 83.860 |
| FXD1/2024/010 | reopening | 16.870% | 16.000% | 9.5 | KES 13.40bn | KES 11.57bn | 95.952 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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