Kenya’s Treasury in Ambitious Move to Raise Ksh40 Bn from December Bonds

The CBK on behalf of the National Treasury seeks to raise Ksh 30 billion for budgetary support.

The National Treasury plans to raise Ksh.40 billion from the sale of FXD4/2019/10 (8.00 years) and FXD1/2018/20 (16.40 years) bonds in December.

The papers carry a coupon rate of 12.280 per cent and 13.200 per cent respectively.

The bonds are open until December 7.

“The ticket size is smaller than previous issues of about Ksh 60.00 billion on average. This is consistent with the better revenue outturn, slower spending and potential support from the IMF,” NCBA Research analysts note.

The government has borrowed Ksh 302 billion, approximately 49 per cent of the target. 

“The sovereign could target to raise about 60% of the target by December. This will considerably reduce funding pressure in the latter half,” they add.

Fiscal Deficit Revised Upwards Estimated at 8.20% of GDP in 2021-22