Investors warm up to long term bonds

February’s bond issuance is expected to raise between Sh40 billion and Sh60 billion on re-opened papers with tenures of between 10 and 15 years.

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Investors have warmed up to long-term bond issuances as interest rates fall, allowing the Central Bank of Kenya (CBK) to veer off the set annual borrowing plan.

The acceptance for the long-dated government securities in the January auction, has increased the scope for the apex bond to continue issuing the papers, extending the average time to maturity for Treasuries.

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