Investors avoid Kenya’s Treasury Bond to raise merely Ksh.1.7 billion

The National Treasury re-opened a three-year and a fifteen-year Treasury Bond for auction which saw investors in a seemingly tight-liquidity market avoid.

Figures from the Central Bank of Kenya (CBK) indicate that out of Ksh.30 billion that had been put up for auction, only Ksh.7.3 billion was received but Ksh.1.75 billion was accepted.

This deals a major blow to the government in an effort to support public spending amid a cash crunch.

The subscription rate was 24.43 percent – a slight improvement from the previous auction, but a dismal performance.

Initially, people would rush to invest in bonds.

A number of investors have lost confidence in such type of investment over the state’s inability to repay debts.

“Investors also pointed out that they are likely to get faster and better returns on their investment elsewhere as compared to investing in Treasury Bonds. Others indicated that they did not have the cash to spare to invest in the latest Treasury Bonds,” this is according to a report by Soko Directory, an online news agency.

Kenya had flooded a 10-year Treasury Bond with an aim of raising Ksh.20 billion but the April 5, 2023 results indicated the state only managed to raise Ksh.3.57 billion.

The results reflected a subscription rate of 17.85 percent, the worst subscription in decades.

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Lawrence Baraza

Lawrence Baraza is a dynamic journalist currently overseeing content at Metropol TV Digital. With a keen focus on business news and analytics, Lawrence guides the platform in delivering insightful, data-driven content that empowers its audience to make informed decisions. Lawrence’s commitment to quality and his ability to anticipate market trends make him a key figure in the digital media landscape. His work continues to shape the way business news is consumed, making a significant impact in the field.

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