Kenya Raises Ksh 20.8 billion from Five-Year Bond Sale

Treasury Mulls Plans to Create Kenya Development Bank

Treasury Cabinet Secretary Ukur Yatani

Kenya’s National Treasury through the central bank raised Ksh 20.8 billion from its five-year bond sale against a target of KSh50 billion.

The bonded attracted bids worth to Ksh 34.5 billion representing a 69 percent performance rate.

“The interest rate for the bond increased slightly compared to the previous issue of similar Treasury bond,” said the Central bank in its weekly bulletin dated 8 May 2020.

The average yield on accepted bids stood at 11.67 percent similar to a recently issued five-year issue listed on the Nairobi Securities Exchange (NSE) secondary bond market.

The funds raised are intended for budgetary support in the remainder of the fiscal year 2019/20 budget estimates.

Analysts expect a tap sale on a later date.

The redemption date is May 5, 2025. Investors are allowed to lock in between a minimum of Sh50, 000 and a maximum of KSh20 million.