Kenya Treasury bonds · auction of 14 October 2024
Kenya bond auction, 14 October 2024: FXD1/2016/010 at 16.984%
The Central Bank of Kenya's bond auction dated 14 October 2024 was a re-opening of FXD1/2016/010 and FXD1/2022/010.
Bids came to KES 51.0bn against KES 30.0bn on offer (170% subscribed), and the Treasury accepted KES 31.3bn.
FXD1/2016/010 cleared at 16.984%, against a 15.039% coupon, with 1.8 years to maturity. Its previous sale, on 2 October 2023, priced at 17.927%, so the yield is down 94 basis points.
FXD1/2022/010 cleared at 16.952%, against a 13.490% coupon, with 7.6 years to maturity. Its previous sale, on 19 September 2022, priced at 13.949%, so the yield is up 300 basis points.
What this means for KES 100,000 of FXD1/2016/010
Worked from the published result · information, not advice
KES 6,392 every six months, after tax, for 1.8 years
At this auction KES 100,000 of face value cost about KES 99,273 (price 99.273 per 100), and the yield that implies is 16.98% a year. The coupon is 15.04%: KES 15,039 a year on KES 100,000 of face value, paid in two halves, KES 12,783 after 15% withholding tax.
Held to maturity (2026-08-17), that is about KES 23,519 in coupons, plus KES 727 gain between what you paid and the KES 100,000 repaid; roughly KES 24,246 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 |
|---|---|---|---|---|---|---|---|
| FXD1/2016/010 | reopening | 16.984% | 15.039% | 1.8 | KES 36.62bn | KES 28.03bn | 99.273 |
| FXD1/2022/010 | reopening | 16.952% | 13.490% | 7.6 | KES 14.35bn | KES 3.25bn | 91.202 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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