This archive report was first published on 28 August 2019.
On August 28, 2019, the government's borrowing in the first quarter of the current fiscal year saw a significant increase due to the sale of Sh50 billion bonds.
The Treasury sought Sh50 billion from two 15-year bonds, first issued in May 2019 and May 2018, in an ongoing sale that started on August 22, 2019, and ended on September 17, 2019.
As a result, the government's medium-term borrowing from domestic investors reached Sh160.27 billion in the first three months of the current financial year, a 277.82 percent increase from Sh46.42 billion raised in the same period a year earlier.
The Central Bank of Kenya (CBK) set a yield of 12.650 percent for investors bidding for the 15-year bond that will mature in just over 13.5 years, lower than the average 13.078 percent when the paper was first issued in May 2018.
Churchill Ogutu, a senior research analyst at Genghis Capital, noted that the current high liquidity environment is transitory.
