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: Could the CBK be jumping the gun with a policy rate cut?

Since Patrick Njoroge’s tenor as Governor of the Central Bank of Kenya (CBK), the decision to ease monetary policy has been against a backdrop of stable macroeconomic conditions. Moreover, the need to enhance private sector credit growth appears to be a key reasoning to ease policy with the quantum linked to the need to avoid … Continue reading Kenya: Could the CBK be jumping the gun with a policy rate cut?

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

Slow down in Kenya consumer and investment demand shaking company boots

A reputable Kenyan based investment company appears to be in murky waters. In the grapevine, the said investment company is reportedly offering targeted investment opportunities at a rate of as high as 15% per annum (current lending rates are at a maximum of 14%) Following the lethargy in investment opportunities and a slowdown in consumer … Continue reading Slow down in Kenya consumer and investment demand shaking company boots