Kenya Treasury bonds · auction of 11 November 2024
Kenya bond auction, 11 November 2024: FXD1/2022/015 at 16.299%
The Central Bank of Kenya's bond auction dated 11 November 2024 was a re-opening of FXD1/2022/015 and FXD1/2023/010.
Bids came to KES 16.3bn against KES 25.0bn on offer (65% subscribed), and the Treasury accepted KES 25.7bn.
FXD1/2022/015 cleared at 16.299%, against a 13.942% coupon, with 12.4 years to maturity. Its previous sale, on 23 January 2023, priced at 14.186%, so the yield is up 211 basis points.
FXD1/2023/010 cleared at 15.972%, against a 14.151% coupon, with 8.2 years to maturity. Its previous sale, on 24 June 2024, priced at 16.392%, so the yield is down 42 basis points.
What this means for KES 100,000 of FXD1/2022/015
Worked from the published result · information, not advice
KES 6,274 every six months, after tax, for 12.4 years
At this auction KES 100,000 of face value cost about KES 88,376 (price 88.376 per 100), and the yield that implies is 16.30% a year. The coupon is 13.94%: KES 13,942 a year on KES 100,000 of face value, paid in two halves, KES 12,548 after 10% withholding tax.
Held to maturity (2037-04-06), that is about KES 155,589 in coupons, plus KES 11,624 gain between what you paid and the KES 100,000 repaid; roughly KES 167,213 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 |
|---|---|---|---|---|---|---|---|
| FXD1/2022/015 | reopening | 16.299% | 13.942% | 12.4 | — | KES 15.40bn | 88.376 |
| FXD1/2023/010 | reopening | 15.972% | 14.151% | 8.2 | KES 16.33bn | KES 10.29bn | 95.276 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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