Kenya Treasury Bonds are long-term debt securities issued by the Central Bank of Kenya on behalf of the Kenyan government. A bond functions like a loan agreement between you, the investor purchasing the bond and an issuer, the Central Bank of Kenya which is borrowing your money. In return, you will receive interest payments twice a year as well as the initial amount of money you invested when the bond matures.
A Depository Receipt gives an investor direct ownership of the underlying asset, usually a stock or a bond, along with some of its benefits.
It is a way for organisations to offer their securities to, and raise money from, investors outside of the country in which they are originally issued.
Diversifying geographically means you are covered if the economy in one country is affected by interest rate changes or other factors. Additionally, bonds are guaranteed by the Central Bank of Kenya which has a good track record of honoring its debts to bond investors.
Boost your sources of income with the interest payments you receive twice a year. Additionally, the Kenya shilling is one of the most stable currencies in East Africa. The returns from your bonds are less likely to fluctuate significantly.
Conveniently buy your bonds in Uganda shillings on one of our self-service platforms (Mobi or uTrade). Gives you access to Kenyan bonds at lower transaction costs compared to transferring funds to Kenya and making the same investment.