Kenya Treasury Bonds

What are Kenya Treasury bonds?

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.

What is a Depository Receipt?

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.

Why should I invest in the Kenya Treasury bonds with ALTX?

Risk Management
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.

‍‍Earning Power
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.

Easy Access
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.

How do I make money from Kenya treasury bonds?

  1. Interest payments: Kenyan Treasury bonds pay interest twice a year at a fixed rate. You may reinvest the money into buying more bonds or request to be paid into your bank account.

  2. Selling: You may sell your bond at a time when its market price is higher than what you bought it for, earning you a profit in addition to the coupon payments you may have already received.

  3. Holding until maturity: You will receive the full sum of your original investment at face value, along with your final coupon payment.

What are the factors that could affect my returns?

Economic and political risks  The performance of your investments can be impacted, positively or negatively, by the economic and political conditions of the countries in which they are located.  No country is risk-free and there is always a possibility of unforeseen circumstances. You should be aware of current events in order to know how much risk you are willing to expose yourself to.

Currency risk The value of your Kenyan bond will be influenced by fluctuations in the exchange rate because your interest payments are received in Kenya shillings. An increase in the value of the Kenya shilling will increase the returns on your bond, while a decrease in its value will have the same effect on your returns.


Interest rates Bonds and interest rates move in opposite directions and are sensitive to changes in interest rates which impact their value. Bonds will trade at a discount when interest rates are rising and at a premium when interest rates are falling. This relationship will be detailed in the next part of the series. For example: If new bonds are issued at higher interest rates than the bonds you already own, the value and demand for your bonds will decrease.

Credit risk Credit risk refers to how likely it is that an investor will lose money from their investment. While bonds are at lower risk than most investments, none of them is completely risk-free.

Transaction costs Please consult our fee guide or your broker for more information.

How do I buy Kenya Government bonds?

  • Open an account
  • Fund your account
  • Invest
  1. Via the ALTX Mobi app or desktop
  2. Look at the options of securities on your market watch
  3. Select your preferred Kenya Treasury bond (GKBXXXXXX)
  4. Click ‘Buy’
  5. Insert the number of units you would like to buy
  6. Complete your purchase.
  7. Alternatively, once you have funded your account you can ask us for assistance with your order.