Kenya Treasury bonds · auction of 20 January 2025
Kenya bond auction, 20 January 2025: FXD1/2022/025 at 15.683%
The Central Bank of Kenya's bond auction dated 20 January 2025 was a re-opening of FXD1/2018/015 and FXD1/2022/025.
Bids came to KES 59.0bn against KES 30.0bn on offer (197% subscribed), and the Treasury accepted KES 48.5bn.
FXD1/2018/015 cleared at 14.210%, against a 12.650% coupon, with 8.3 years to maturity. Its previous sale, on 19 July 2021, priced at 12.607%, so the yield is up 160 basis points.
FXD1/2022/025 cleared at 15.683%, against a 14.188% coupon, with 22.7 years to maturity. Its previous sale, on 12 December 2022, priced at 14.439%, so the yield is up 124 basis points.
What this means for KES 100,000 of FXD1/2022/025
Worked from the published result · information, not advice
KES 6,385 every six months, after tax, for 22.7 years
At this auction KES 100,000 of face value cost about KES 94,253 (price 94.253 per 100), and the yield that implies is 15.68% a year. The coupon is 14.19%: KES 14,188 a year on KES 100,000 of face value, paid in two halves, KES 12,769 after 10% withholding tax.
Held to maturity (2047-09-23), that is about KES 289,505 in coupons, plus KES 5,747 gain between what you paid and the KES 100,000 repaid; roughly KES 295,252 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 |
|---|---|---|---|---|---|---|---|
| FXD1/2018/015 | reopening | 14.210% | 12.650% | 8.3 | KES 30.58bn | KES 23.75bn | 94.664 |
| FXD1/2022/025 | reopening | 15.683% | 14.188% | 22.7 | KES 28.42bn | KES 24.73bn | 94.253 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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