Treasury fails to meet June Bond target, raises Ksh.19.6 billion

The National Treasury failed to meet its June 23, 2022 tap sale of Ksh.25 billion when it managed to raise Ksh.19.6 billion.

The three-year and fifteen-year fixed-rate Treasury Bond represented a 78.4 percent drop in the Ksh.25 bids.

Treasury received bids totaling Ksh.21.2 billion. Interest rates remained stable, with all the Treasury bills rates increasing marginally.

Central Bank of Kenya (CBK) has taken all proceeds from the issue ahead of the winding up of the current fiscal year on June 30, 2022.

Treasury has again re-opened 15-year issue investor bids for the tap sale with total bids at Ksh.16 billion.

The paper offered a higher yield at 13.942 percent in contrast to the re-opened three-year paper that has an 11.766 percent coupon rate.

The sub-par performance of the tap-sale which followed a modest uptake in June’s infrastructure bond is expected to leave the National Treasury slightly below its local borrowing program for the ending fiscal year.

National Treasury Statement of Actual Revenues and Net Exchequer issues as of April 28 shows Kenya was still short of its Ksh.1 trillion gross domestic borrowing target having borrowed Ksh.735 billion in ten months to the period.

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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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