Kenya Treasury bonds · auction of 17 February 2025
Kenya bond auction, 17 February 2025: IFB1/2023/017 at 14.281%
The Central Bank of Kenya's bond auction dated 17 February 2025 was a re-opening of IFB1/2022/014 and IFB1/2023/017.
Bids came to KES 193.9bn against KES 70.0bn on offer (277% subscribed), and the Treasury accepted KES 130.8bn.
IFB1/2022/014 cleared at 13.978%, against a 13.938% coupon, with 11.7 years to maturity. Its previous sale, on 28 November 2022, priced at 13.938%, so the yield is up 4 basis points.
IFB1/2023/017 cleared at 14.281%, against a 14.399% coupon, with 15.0 years to maturity. Its previous sale, on 2 September 2024, priced at 17.728%, so the yield is down 345 basis points.
What this means for KES 100,000 of IFB1/2023/017
Worked from the published result · information, not advice
KES 7,200 every six months, tax-free, for 15.0 years
At this auction KES 100,000 of face value cost about KES 106,984 (price 106.984 per 100), and the yield that implies is 14.28% a year. The coupon is 14.40%: KES 14,399 a year on KES 100,000 of face value, paid in two halves, with no withholding tax on an infrastructure bond.
Held to maturity (2040-02-20), that is about KES 216,074 in coupons, plus KES -6,984 loss between what you paid and the KES 100,000 repaid; roughly KES 209,090 in all.
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 |
|---|---|---|---|---|---|---|---|
| IFB1/2022/014 | reopening | 13.978% | 13.938% | 11.7 | KES 93.13bn | KES 65.26bn | 103.501 |
| IFB1/2023/017 | reopening | 14.281% | 14.399% | 15.0 | KES 100.77bn | KES 65.55bn | 106.984 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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