The NSE offers issuers and investors one of the most advanced debt markets in the region. This market is composed of Treasury, Corporate Bonds ,Green Bonds and the M-Akiba Bond. It is the market of choice in the region for organizations requiring to raise debt finance for projects, expansions and working capital.
Treasury bonds are a secure, medium- to long-term investment that typically offer investors interest payments every six months throughout the bond’s maturity. Treasury Bonds enable the Government raise significant capital to support Government related initiatives such as infrastructure development.
In Kenya, the Central Bank auctions Treasury bonds on a monthly basis, but offers a variety of bonds throughout the year and the bonds are listed on the NSE for secondary trading.
Most Treasury bonds in Kenya are fixed rate, meaning that the interest rate determined at auction is locked in for the entire life of the bond. This makes Treasury bonds a predictable, long-term source of income. The National Treasury also occasionally issues tax-exempt infrastructure bonds for secondary market trading and is part of the investment opportunities that are frequently oversubscribed at primary and secondary levels.
Benefits of Treasury Bonds
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.
Consistent and Regular Returns-Most treasury bonds carry a semi-annual interest payment, allowing investors to receive returns every six months.
Flexibility-Through the varying types of infrastructure bonds issued by the Government, investors have room to invest in bonds that suit their specific investment needs.
For more information of treasury bonds, visit https://www.centralbank.go.ke/securities/treasury-bonds/