Kenya Bond Market Update: 13 August 2024

Published on
August 13, 2024
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Crystal Ball Time

 

The sale period for the two re-opened infrastructure bonds, IFB1/2023/6.5Yr & IFB1/2023/17Yr, ends tomorrow. Bids must be submitted by 10.00AM EAT. In light of this, I have dusted off my crystal ball and below are my expectations:

  • IFB1/2023/6.5Yr (maturity is May 2030): average between 18.10% - 18.30%
  • IFB1/2023/17Yr (maturity is February 2040): average between 16.90% - 17.10%
  • Subscription: The auction should be well over-subscribed, with interest skewed towards the IFB1/2023/6.5Yr

Away from the primary auction, we have some trading to do. To help you out with this, 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 15.50 15.00 0.00
IFB1/2016/9 (IFB10) May-25 16.00 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 16.50 16.00 0.00
IFB1/2018/15 (IFB14) Jan-33 16.50 16.00 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 16.50 16.20 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 17.00 16.00 0.00
IFB1/2021/16 (IFB21) Jan-37 16.50 16.00 0.00
IFB1/2021/18 (IFB22) Mar-39 16.50 16.30 0.00
IFB1/2021/21 (IFB23) Aug-42 16.70 16.50 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 0.00
IFB1/2024/8.5 (IFB31) Aug-32 18.50 18.00 -0.05
 
Key  Interest Rates   Mov (bps)
O/N Interbank 12.9273% -10.94
91 Day T-bill 15.8177% -17.07
182 Day T-bill 16.7148% -13.54
364 Day T-bill 16.9141% -0.65
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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