Bond values at NSE fall as interest rates rise

A unit of a bond is priced at Sh100 when the paper is first issued by the Central Bank of Kenya (CBK) in what is known as a primary sale.

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Bond prices in the secondary market at the Nairobi bourse have come down compared to a year ago as interest rates rise in the wake of the war in Iran, cutting the profits for those opting to sell their bonds before maturity.

In their half-year financial results, listed banks say they recorded a paper loss of Sh7.2 billion on the value of their government bonds due to the secondary market price movement.

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Note: The results are not exact but very close to the actual.