Best Bonds In Kenya

What is a Bond?

In finance, a bond is a type of security under which the issuer (debtor) owes the holder (creditor) a debt, and is obliged – depending on the terms – to provide cash flow to the creditor (e.g. repay the principal (i.e. amount borrowed) of the bond at the maturity date as well as interest (called the coupon) over a specified amount of time).

The timing and the amount of cash flow provided varies, depending on the economic value that is emphasized, thus giving rise to different types of bonds.

Best Bonds In Kenya

What type of bonds are available in Kenya?

Government Securities in Kenya

In Kenya, the National Treasury offers two types of government securities: Treasury bills and Treasury bonds.

How much do I need to invest in bonds in Kenya?

The main difference between Treasury Bills (T-Bills) and Bonds (T-Bonds) is the Tenor i.e. Bonds are longer-term (above 1 year) while Bills are short-term (1 year and below).

The minimum investment amount is Kshs. 100,000 while for the Treasury Bonds, the minimum investment amount is Kshs. 50,000.

What is the current interest rate on bonds in Kenya?

The Kenya 10Y Government Bond has a 16.164% yield. The 10-year vs. 2-year bond spread is 320.9 bp. Normal Convexity in Long-Term vs. Short-Term Maturities. The Central Bank Rate is 10.50% (last modification in June 2023).

How can I buy bonds in Kenya?

  1. Decide How You Want to Invest. Treasury bonds are offered for a set amount of years, ranging, to date, from one to 30.
  2. Complete and Submit an Application Form. When you are ready to invest, you need to complete a Treasury bond application form.
  3. Getting the Auction Results.
  4. Payment.
  5. Maturity Proceeds.

Are Kenyan bonds safe?

Security-Treasury Bonds are units of Government Debt meaning you are investing I the Kenyan Government. This makes the asset a secure investment for both retail and institutional investors.