Kenya Bond Market Update: 07 August 2024

Published on

August 7, 2024

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Working Crystal Ball

The Monetary Policy Committee (MPC) in yesterday’s meeting decided to lower the Central Bank Rate (CBR) to 12.75% from 13.00%. The MPC concluded that there was scope for a gradual easing of the monetary policy stance, while ensuring continued exchange rate stability and thus settled on the 25bp cut in the CBR. Attached is the MPC Statement for your perusal and below is a link to the Central Bank Governor’s post-MPC press briefing held this morning: https://www.youtube.com/watch?v=hCLSq19Zx60.
For your trading activities ahead, below is a snapshot of what is at play within the secondary market for your consideration. Happy hunting!

Below are the two-way quotes for the benchmark tenors:

Indicative Two-Way Quotes - Benchmark Tenors
Benchmark Tenor	Bid (%)	Offer (%)	Mov (t-t0)%
1Yr	17.50	17.00	0.00
2Yr	18.00	17.70	0.00
5yr	18.50	18.00	0.00
10yr	16.50	16.00	0.00
15yr	16.50	16.00	0.00
20yr	16.50	16.00	0.00
25yr	16.50	16.00	0.00

Below are details of the two-way quotes for the infrastructure bonds and the key rates:

Indicative Two-Way Quotes - IFB Series
IFB series	Maturity	Bid (%)	Offer (%)	Mov (t-t0)%
IFB1/2017/7 (IFB13)	Nov-24	15.25	15.00	0.00
IFB1/2016/9 (IFB10)	May-25	15.25	15.00	0.00
IFB1/2015/12 (IFB8)	Mar-27	15.50	15.00	0.00
IFB1/2017/12 (IFB12)	Feb-29	16.00	15.00	0.00
IFB1/2016/15 (IFB11)	Oct-31	16.00	15.50	0.00
IFB1/2018/15 (IFB14)	Jan-33	15.50	15.00	0.00
IFB1/2018/20 (IFB15)	Oct-38	16.50	16.00	0.00
IFB1/2019/25 (IFB16)	Feb-44	16.50	16.00	0.00
IFB1/2019/16 (IFB17)	Oct-35	15.50	15.20	0.00
IFB1/2020/9 (IFB18)	Apr-29	16.50	16.00	0.00
IFB1/2020/6 (IFB19)	May-26	16.50	16.00	0.00
IFB1/2020/11 (IFB20)	Aug-31	17.05	16.00	0.00
IFB1/2021/16 (IFB21)	Jan-37	15.80	15.50	0.00
IFB1/2021/18 (IFB22)	Mar-39	16.50	16.00	0.00
IFB1/2021/21 (IFB23)	Aug-42	16.50	16.00	0.00
IFB1/2022/19 (IFB24)	Jan-41	17.30	16.00	0.00
IFB1/2022/18 (IFB25)	May-40	16.60	16.00	0.00
IFB1/2022/14 (IFB26)	Oct-36	16.60	16.00	0.00
IFB1/2022/6 (IFB27)	Nov-28	16.50	16.00	0.00
IFB1/2023/17 (IFB28)	Feb-40	17.30	16.00	0.00
IFB1/2023/7 (IFB29)	Jun-30	16.90	16.20	0.00
IFB1/2023/6.5 (IFB30)	May-30	18.30	17.90	-0.15
IFB1/2024/8.5 (IFB31)	Aug-32	18.50	18.00	-0.20

Key Interest Rates		Mov (bps)
O/N Interbank	13.1877%	-0.64
91 Day T-bill	15.9884%	-1.16
182 Day T-bill	16.8502%	-0.04
364 Day T-bill	16.9206%	-0.06
Central Bank Rate (CBR)	12.75%	-25.00
Inflation	4.30%	-20.00

Attached are the bond positions available today and the August bond auction prospectus.

Bond Positions

August Bond Auction Prospectus

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Kenya Bond Market Update: 07 August 2024

Working Crystal Ball

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