The Central Bank of Kenya is in the market with two treasury bonds worth KSh50 billion which will mature in 10 and 20 years. The bonds are meant to raise funds to support the budget and will be on sale for two weeks from 22nd March to 9th April 2019.
At the start of 2019, the government issued a shorter-term bond with a maturity of two years a long period of offering long-term debt. It appears that the treasury is back to issuing long term debt with its first offer of 20-year fixed coupon bond in 2019.
The 15 year Treasury bond issued in January received 62 percent subscription rate compared to the 2 year bond which got a subscription rate of 192 percent.
Investors are expected to put in a minimum of KSh50,000 and a maximum of KSh20 million for every CDS account.
The interest rate on the two bonds will be determined by the market. Payments will be made every six months until maturity date on 2nd April 2029 for the 10 year bond and on 21st March 2039 for the 20 year bond.