Sharp Daily
No Result
View All Result
Friday, October 17, 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

NSE Bond Turnover Drops 14% in Q1 Amid Challenges

Benson Muriithi by Benson Muriithi
April 24, 2023
in Investments
Reading Time: 2 mins read
Photo/Courtesy

Photo/Courtesy

According to the latest data from the Capital Markets Authority, the traded turnover of bonds listed at the Nairobi Securities Exchange (NSE) decreased by 14.9% year-on-year in the first quarter of 2023, reflecting tighter monetary conditions in the country.

Investors traded bonds worth Ksh162.51 billion during the period, which is down from Ksh190.9 billion in the same quarter of last year. This decline has been attributed to slower economic growth, insufficient investment growth, and macroeconomic instability, which have affected the region’s capital markets performance. The rise in inflation has seen the Central Bank tighten policy at an unusually rapid pace amid unfavorable global financial conditions and high debt levels.

Read: High Eurobond Yield Piles Pressure on Kenya Debt Servicing

In the secondary bonds market, bond turnover increased by 2.7% from the previous quarter. However, this was a 14.9% year-on-year reduction from a bond turnover of Ksh190.95 billion recorded in the same quarter of the previous year. Fixed-income securities faced upward yield pressure amid rising inflation, and the Central Bank’s unwillingness to take up expensive offers resulted in low-performance levels of recent bonds.

RELATEDPOSTS

CBK flags surge in financial fraud as losses triple to KES 1.6 billion

October 15, 2025

Equities, Bonds, or Fixed Deposits?

October 7, 2025

Many investors were unwilling to sell their bonds in the secondary market due to the prospect of taking a hit on prices caused by rising yields, and they opted to hold onto their bonds to avoid actualizing the paper losses.

The decline in bond values was a result of a rise in interest rates in global markets as central banks tried to contain inflation induced by rising oil prices and supply chain disruption due to the Russia-Ukraine war.

Also Read: Government’s Compliance with IMF to Worsen Cost of Living

The primary market also recorded below-par performance in the quarter, largely due to investors shying away from longer-dated papers. They anticipated that rates would go up in the short term to reflect higher borrowing needs by the government.

In the period, the government issued eight new bond tranches to the public targeting to raise Ksh190 billion. These included three re-opened bonds, two new issues, and three tap sales.

Email your news TIPS to editor@thesharpdaily.com

Previous Post

Government’s Compliance with IMF to Worsen Cost of Living

Next Post

KRA to Allow Used Car Importers to Defer Taxes

Benson Muriithi

Benson Muriithi

Related Posts

Investments

The Challenge of Preserving Retirement Savings in Kenya

October 16, 2025
Investments

EABL to redeem KES 11.0 billion medium-term notes ahead of schedule

October 14, 2025
Investments

Kenya’s 2028 Eurobond Buyback marks a turning point in debt management

October 14, 2025
Investments

Kenya shifts to bond financing for SGR and JKIA expansion

October 13, 2025
Investments

Kenya Pipeline IPO deadline extended to 2026 and what it means for the Privatization Agenda

October 9, 2025
Analysis

Valuation multiples

October 9, 2025

LATEST STORIES

The Challenge of Preserving Retirement Savings in Kenya

October 16, 2025

Understanding Segregated vs Guaranteed Pension Schemes

October 16, 2025

The Sanlam-Jubilee deal

October 16, 2025

Kenya’s industrial real estate awakening

October 16, 2025

Stanbic Kenya in advanced talks to acquire NCBA: A game-changer in Kenya’s banking sector

October 16, 2025

CBK flags surge in financial fraud as losses triple to KES 1.6 billion

October 15, 2025

StanChart Kenya retirees face fresh legal stalemate over KES 7.0 billion pension payout

October 15, 2025

U.S. bank earnings take center stage amid government data freeze

October 15, 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