Best Bonds To Buy In Kenya

What is a Bond?

A bond is a fixed-income instrument that represents a loan made by an investor to a borrower (typically corporate or governmental). A bond could be thought of as an I.O.U. between the lender and borrower which includes the details of the loan and its payments.

Bonds are used by companies, municipalities, states, and sovereign governments to finance projects and operations. Owners of bonds are debtholders, or creditors, of the issuer.

Best Bonds To Buy In Kenya

What types 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 interest do government bonds pay in Kenya?

The Kenya 10 Years Government Bond has a 16.396% yield (last update 20 Aug 2023 2:15 GMT+0). Yield changed +11.9 bp during last week, +70.3 bp during last month, +216.5 bp during last year.

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.

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.

Is it profitable to buy bonds?

Summary. Right now, purchasing bonds is not a good idea as bond returns do not compensate for the risky nature of the investments.

However, a handful of bonds are still a good idea (such as the six-month US treasury bond). Investors looking to purchase bonds can do so through a broker, bank, or dealer.