CBK Issues Ksh50 billion 5-year bond

Denis Gitau | May 7, 2020

The Kenyan government is seeking to raise KSh50 billion through the issue of two bonds; 5-year and 15-year fixed coupon treasury bonds.

The 5-year bond (FXD1/2020/5) is intended for budgetary support in the fiscal year 2019/2020, as Treasury plans to raise KSh271 billion through domestic borrowing.

The two treasury bonds will be on sale till 5^th May 2019. The interest rate for the two bonds will be market-determined and Interest payments will be subject to a withholding tax of 15 percent for the 5-year bond and 10 percent for the 15-year bond.

Investors are invited to put in a minimum investment of Ksh50,000 toward the debt instruments whose expiry dates are on 6^th May 2024 and 24^th April 2034 respectively.

In March, the treasury managed to collect KSh16.3 billion from the KSh50 billion 25-year infrastructure bond it offered to the public. The long-term infrastructure bond was undersubscribed by 41 percent.

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