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Kenya Goes for Largest Infrastructure Bond in Two Years at Ksh.70 Billion

Kenya has put on auction Ksh.70 billion ($429 million) through the sale of infrastructure bonds, the largest sale since 2022.

The 8.5-year security is being sold as a tax-free bond, similar to other debt that’s issued to fund infrastructure projects, according to a circular from the National Treasury’s fiscal agent, the Central Bank of Kenya (CBK).

CBK announced the auction Monday with the period of sale set to lapse on February 14, 2024.

“The bond will be tax-free as is the case for infrastructure bonds,” said CBK. The funds are purposed to fund the projects in the fiscal year 2023/24 budget estimates.

The Recent Bond Sales

Kenya’s government has raised Ksh.397 billion through the sale of infrastructure bonds since January 2023 to fund projects ranging from road construction to water supply.

The latest offering is the biggest since December 2022, when Ksh.87.8 billion of the bonds were auctioned.

At the most recent infrastructure bond auction, Kenya sold Ksh.50 billion (6.5-year securities) at 17.9% in October 2023.

At the prior sale in June, the seven-year paper was oversubscribed almost four times.

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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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