Kenya Treasury bonds · auction of 19 February 2025
Kenya bond auction, 19 February 2025: FXD1/2020/005 at 8.946%
The Central Bank of Kenya's bond auction dated 19 February 2025 was a buyback of FXD1/2020/005, FXD1/2022/003 and IFB1/2016/009.
Bids came to KES 56.1bn against KES 50.0bn on offer (112% subscribed), and the Treasury accepted KES 50.1bn.
FXD1/2020/005 cleared at 8.946%, against a 11.667% coupon, with 0.2 years to maturity. Its previous sale, on 23 January 2023, priced at 12.879%, so the yield is down 393 basis points.
FXD1/2022/003 cleared at 9.068%, against a 11.766% coupon, with 0.1 years to maturity. Its previous sale, on 24 April 2023, priced at 13.471%, so the yield is down 440 basis points.
IFB1/2016/009 cleared at 9.091%, against a 12.500% coupon, with 0.2 years to maturity. Its previous sale, on 23 May 2016, priced at 13.339%, so the yield is down 425 basis points.
What this means for KES 100,000 of FXD1/2020/005
Worked from the published result · information, not advice
KES 4,958 every six months, after tax, for 0.2 years
At this auction KES 100,000 of face value cost about KES 103,942 (price 103.942 per 100), and the yield that implies is 8.95% a year. The coupon is 11.67%: KES 11,667 a year on KES 100,000 of face value, paid in two halves, KES 9,917 after 15% withholding tax.
Held to maturity (2025-05-05), that is about KES 2,036 in coupons, plus KES -3,942 loss between what you paid and the KES 100,000 repaid; roughly KES -1,906 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 |
|---|---|---|---|---|---|---|---|
| FXD1/2020/005 | buyback | 8.946% | 11.667% | 0.2 | KES 40.07bn | KES 35.08bn | 103.942 |
| FXD1/2022/003 | buyback | 9.068% | 11.766% | 0.1 | KES 10.28bn | KES 9.27bn | 104.677 |
| IFB1/2016/009 | buyback | 9.091% | 12.500% | 0.2 | KES 5.74bn | KES 5.74bn | 104.143 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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