Sharp Daily
No Result
View All Result
Friday, June 27, 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 News

Yields on Government Securities Breached 16.0% in the Primary Market

Vincent Wangu by Vincent Wangu
July 13, 2023
in News
Reading Time: 1 min read

The government’s appetite for borrowing is really worrying. For starters, The Central Bank of
Kenya has released the auction results for the newly issued bond FXD1/2023/05 and the re-
opened bond FXD1/2016/10, with the Weighted average rate of the Accepted yields coming in
at 16.8% and 16.3%, respectively.

Investors seem to be adamant about demanding high rates, further emphasizing their view of
government securities as high-risk. The high-interest rates continue to affect the country’s
credit rating as they weaken Kenya’s debt affordability.

With such high rates, questions arise as to how the government will be able to repay these
expensive debts. The elevated food and fuel prices leave Kenyans with less disposable income,
and therefore increasing taxes will definitely overburden Kenyans.

The Purchasing Manager’s Index (PMI) has been below 50 for the last five months, with PMI for
June coming in at 47.8, down from the 49.4 recorded in May 2023, signalling a deteriorating
business environment. With business output declining, it brings about the risk of the
government not meeting its target revenue and therefore having to depend more on debt to
finance its operations.

RELATEDPOSTS

Why firms are shedding jobs despite survival

June 19, 2025

Opinion: Austerity wrong medicine for Kenya’s economy.

June 16, 2025

The government needs to take austere measures to reduce its spending; otherwise, we won’t
be able to break away from this cycle. The loopholes where public money is siphoned off or lost
need to be sealed.

Previous Post

The Reinsurance Business in Kenya Has Continued to Grow Despite the Current Economic Slowdown

Next Post

Banks Remain the Largest Domestic Lenders to The Government

Vincent Wangu

Vincent Wangu

Related Posts

News

Private vs Public Pension Funds in Kenya

June 27, 2025
Investments

Investor shift to long term bonds drives oversubscription in CBK’s reopened auction

June 19, 2025
News

The real price of Israel – Iran Conflict for Kenya.

June 19, 2025
Economy

Resilient but strained: Kenyan firms speak out in May 2025 CEO survey.

June 19, 2025
News

Co-op Bank posts KES 6.9 billion profit in Q1’2025

May 16, 2025
Agriculture And Economy
News

Lets get Kenya out of FATF list

May 9, 2025

LATEST STORIES

Private vs Public Pension Funds in Kenya

June 27, 2025

The mechanics of currency manipulation

June 27, 2025

Understanding how to access your pension savings in Kenya.

June 27, 2025

What happened to president Ruto’s economic dream?

June 27, 2025

Opinion: Populism feeds votes, not growth

June 27, 2025

Competitive advantages of small businesses

June 26, 2025

Opinion: Invest in sports for national prosperity

June 26, 2025

Ethiopia’s access to Eritrean ports is a game-changer for trade

June 26, 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