Kenya: Treasury Bond Performance for FY 2021/2022

Underlining healthy investor demand for government securities, all Treasury bonds auctioned thus far in the FY 2021/21 (July 2021 to June 2022) have been oversubscribed save for the Tap sale earlier in the cycle. Favourable subscription may be linked to the availability of excess funds amid limited investment outlets during this pandemic. Moreover, elevated credit … Continue reading Kenya: Treasury Bond Performance for FY 2021/2022

Kenya: Rebased National accounts to positively impact sovereign debt metrics (Summary)

Kenya’s national accounts were rebased reflecting a new benchmark year of 2016, from 2009 previously, in a bid to use data that was more representative of the economy in terms of size and structure. The change in base year aligns with the United Nations Statistical Commission’s recommendations to rebase national accounts every five years. As … Continue reading Kenya: Rebased National accounts to positively impact sovereign debt metrics (Summary)

Kenya: Rate cap repeal boosts investor risk appetite

The month of October ended on a high as indications of a post-interest rate cap era improved investor risk appetite. Bank stocks rallied for the second consecutive week, rising by close to 26.00% on average as prospects of increased lending and profitability anchored investor sentiments. Adjustments to the yield curve, as a result of a rate cap … Continue reading Kenya: Rate cap repeal boosts investor risk appetite

Kenya: Prospects of interest rate cap repeal to elevate appeal for lower duration bonds

Investors may enhance their exposure to lower duration bonds as the uncertain interest rate environment portends a big effect on bond       portfolios. Following the President’s recommendation to repeal the law capping interest rates, investors are priming themselves for the         possibility of higher interest rates. Coupled with the government’s bigger debt load, given the under-performance in revenues, … Continue reading Kenya: Prospects of interest rate cap repeal to elevate appeal for lower duration bonds