Sharp Daily
No Result
View All Result
Thursday, October 9, 2025
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
Sharp Daily
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
No Result
View All Result
Sharp Daily
No Result
View All Result
Home Investments

Kenyans shun government bond as subscription rate plummets to 2.4%

Brian Murimi by Brian Murimi
July 5, 2024
in Investments
Reading Time: 1 min read

Kenyan investors have overwhelmingly rejected the latest government bond offering, with the subscription rate falling to a mere 2.4%.

The Central Bank of Kenya (CBK) reported that the tap sale issue for the FXD1/2023/002 bond received bids worth only KES 0.488 billion against the offered KES 20.0 billion.

The 1.2-year bond, carrying a fixed coupon rate of 17.0%, failed to attract significant interest despite offering a real return of 12.5% based on the current inflation rate of 4.6%.

The government accepted nearly all bids, with an acceptance rate of 99.8%, totaling KES 0.486 billion.

RELATEDPOSTS

Equities, Bonds, or Fixed Deposits?

October 7, 2025

Steps banks can take to align with fair lending practices

August 7, 2025

This poor performance contrasts sharply with the Treasury bill market, which saw its first oversubscription in four weeks. The overall subscription rate for T-bills reached 124.4%, a significant improvement from the previous week’s 32.0% undersubscription.

Investors showed a strong preference for the 91-day T-bill, which was oversubscribed by 370.1%. The 182-day and 364-day papers also saw increased interest, with subscription rates of 94.2% and 56.3% respectively.

The government accepted KES 27.9 billion out of the KES 29.9 billion bids received for T-bills, representing an acceptance rate of 93.4%. Yields on all T-bill tenors increased slightly, with the 364-day paper rising to 16.83%, the 182-day to 16.80%, and the 91-day to 15.99%.

The stark difference in performance between the bond and T-bills suggests that investors are currently favoring shorter-term government securities, possibly due to uncertainties in the long-term economic outlook or expectations of further interest rate changes.

This development poses challenges for the Kenyan government’s debt management strategy, as it may need to reassess its approach to longer-term borrowing in the domestic market. The low subscription rate for the bond could potentially lead to higher borrowing costs in future issuances if the trend continues.

Previous Post

Government halts public sector hiring in bid to tame wage bill

Next Post

Labour sweeps to power as Keir Starmer replaces Sunak as UK Prime Minister

Brian Murimi

Brian Murimi

Brian Murimi is a journalist with major interests in covering tech, corporates, startups and business news. When he's not writing, you can find him gaming, watching football or sipping a nice cup of tea. Send tips via bireri@thesharpdaily.com

Related Posts

Investments

Equities, Bonds, or Fixed Deposits?

October 7, 2025
Investments

Kenya’s Inflation is creeping up, What it means for investors

October 7, 2025
Analysis

Kenya Pipeline Company IPO

October 3, 2025
Investments

Post-September review: What CMMF did and what’s next

September 26, 2025
Investments

CMMF at a glance: Competitive returns & easy access for every investor

September 19, 2025
Analysis

Alternative investments: Opportunities and risks

September 12, 2025

LATEST STORIES

The economic and environmental gains of Kenya’s LPG shift

October 8, 2025

Equities, Bonds, or Fixed Deposits?

October 7, 2025

Kenya’s Inflation is creeping up, What it means for investors

October 7, 2025

The Role of Micro-Pensions Plans in Kenya

October 3, 2025

Understanding the link between international aid and cooperative finance stability in Sub-Saharan Africa

October 3, 2025

Kenya Pipeline Company IPO

October 3, 2025

Kenya Q2’ 2025 GDP growth accelerates to 5.0%

October 3, 2025

Kenya’s Regulated SACCOs Cross Trillion Shilling Mark

October 2, 2025
  • About Us
  • Meet The Team
  • Careers
  • Privacy Policy
  • Terms and Conditions
Email us: editor@thesharpdaily.com

Sharp Daily © 2024

No Result
View All Result
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team

Sharp Daily © 2024