Investors Rush for T-Bills
According to the Central Bank of Kenya’s (CBK) weekly bulletin, investors are actively buying up short-term government paper (treasury Bills) to cash in on high yields before interest rates begin to fall. A treasury bill is a short term debt obligation issued by the government. In Kenya there are…
The ABCs of Buying a Government Security
In Kenya there exist two types of government securities; bills and bonds. These are both debt instruments but they vary in certain aspects. A Treasury Bill is a short term debt obligation issued by the government. In Kenya there are three types: the 91 day T-Bill, 182 day T-Bill and…
Foreign exchange reserves increase to 9-month high
The foreign exchange reserves held by the Central Bank of Kenya increased last week to the highest levels in the last 9 months. An increase in foreign reserves, caused by the Central Bank buying foreign currency (usually the US dollar) using local currency has helped stabilise the shilling against…
KenGen Bondholders to Receive First Redemption Installment .
This month, the country’s power generating firm KenGen is set to pay out the first redemption installment of the 10 year Public Infrastructure Bond the company issued in 2009. The Ksh 25 billion bond was structured such that bondholders received semi-annual interest payments or coupons in the first two…
CBK expected to maintain CBR despite falling inflation
The Central Bank of Kenya’s Monetary Policy Committee (MPC) is expected to hold a meeting this week. The Central Bank’s principal objective is the formulation and implementation of monetary policy directed to achieving and maintaining stability in the general level of prices. The aim is to achieve stable prices –…
CBK to auction T-Bills this week
Last week, the Central Bank of Kenya (CBK) offered 91-day and 182-day treasury bills for a total of Kshs. 7 billion. There were 190 bids for the 91-day bills amounting to Kshs. 1.19 Billion representing 30% subscription and 170 bids for the 182-day bills amounting to Kshs. 4.47 Billion, representing…
CBKs Presence in Market Weakening Shilling.
Presence of the Central Bank of Kenya (CBK) in the currency market for the past one year has been keeping the shilling weak. Treasury dealers at the Bank of Africa (BoA) say that the sharp depreciation of the shilling has given CBK control over movements of the shilling.
What do Reducing Bank Interest Rates Mean?
Recently Standard Chartered Bank reviewed its interest rate on unsecured loans down from 23% to 19.9%. Last week, Barclays Bank followed suit and lowered the interest rates on some of its financial products. According to the Daily Nation, Housing Finance managing director Frank Ireri…
A Weak Shilling
The last time I checked the Kenyan shilling, it was hitting 92 against the dollar. Over sometime now, the demand for the dollar has been on the rise. The Kenya monetary body has opted to keep way from the market. I applaud the Central bank for this bold move has…
Bonds. Central Bank Bonds.
Yes those bonds. The Central Bank is re-issuing treasury bonds from 3/6/ 2011 to 21/6/2011. The bonds are 2, 5 and 20 year periods. The minimum amount you can invest is 50,000/= The bonds will be listed at the Nairobi Stock Exchange. Buying treasury bonds is advisable if you have…
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