Kenya Treasury bonds · auction of 9 December 2024
Kenya bond auction, 9 December 2024: FXD1/2023/010 at 14.691%
The Central Bank of Kenya's bond auction dated 9 December 2024 was a re-opening of FXD1/2018/020 and FXD1/2023/010.
Bids came to KES 71.3bn against KES 25.0bn on offer (285% subscribed), and the Treasury accepted KES 53.4bn.
FXD1/2018/020 cleared at 15.112%, against a 13.200% coupon, with 13.2 years to maturity. Its previous sale, on 13 December 2021, priced at 13.366%, so the yield is up 175 basis points.
FXD1/2023/010 cleared at 14.691%, against a 14.151% coupon, with 8.1 years to maturity. Its previous sale, on 11 November 2024, priced at 15.972%, so the yield is down 128 basis points.
What this means for KES 100,000 of FXD1/2023/010
Worked from the published result · information, not advice
KES 6,014 every six months, after tax, for 8.1 years
At this auction KES 100,000 of face value cost about KES 102,046 (price 102.046 per 100), and the yield that implies is 14.69% a year. The coupon is 14.15%: KES 14,151 a year on KES 100,000 of face value, paid in two halves, KES 12,028 after 15% withholding tax.
Held to maturity (2033-01-31), that is about KES 97,972 in coupons, plus KES -2,046 loss between what you paid and the KES 100,000 repaid; roughly KES 95,926 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 |
|---|---|---|---|---|---|---|---|
| FXD1/2018/020 | reopening | 15.112% | 13.200% | 13.2 | KES 23.92bn | KES 18.49bn | 92.165 |
| FXD1/2023/010 | reopening | 14.691% | 14.151% | 8.1 | KES 47.40bn | KES 34.92bn | 102.046 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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