Kenya Seeks Ksh.50 Billion in July Treasury Bond for Budgetary Support

The Kenyan government has floated a Ksh.30 billion Treasury Bond for July to help support its 2024/25 budget.

The ten-year and a 20-year paper has a coupon rate of 16 percent and 13.7 percent respectively with the bids set to begin on July 26.

The two have a remaining terms of maturity of 9.7 years and 3.9 years with the last day for biding scheduled for July 22, 2024.

Ksh.20 Billion T-Bond

Kenya has also floated a Ksh.20 billion bond Through Kenya’s National Treasury Fiscal agent – the Central Bank of Kenya (CBK).

Also Read: CBK out to close sale of treasury bonds worth Ksh.50 billion

The 20-year tap was with (a 2-year paper with a coupon rate of 16.97% and a tenor to maturity of 1.1 years) re-opened for bidding on June 26, 2024 with the deadline set for July 8, 2024.

CBK’s strategy of offering bonds with varied maturities aims to diversify investment options for both short and long-term investors while ensuring a manageable schedule of future maturities.

Favorable returns drive the current investor preference for short-term papers amidst a stable Central Bank rate of 13.00%.