Best-Day, Friday
The Treasury Cabinet Secretary presented the country’s FY 2022/23 budget to Parliament and proposed the plans to be implemented to finance this budget. I have attached a summary of the Budget Statement from the National Treasury for your perusal and below are the highlights I believe are relevant to our space:
- Revenue: KES 2.447Tn (inclusive of Appropriation-in-Aid and grants for the FY 2022/23)
- Expenditure: KES 3.342Tn
- Deficit: KES 863.5Bn
- Deficit Financing: Net External financing of KES 280.7Bn and Domestic Financing of KES 581.7Bn (domestic borrowing target for the CBK)
The T-bill auction results were underwhelming again as tightness in liquidity continues to affect the market. Attached are the results in full for your perusal. Below is a snapshot of what is at play within the secondary market for your consideration. Happy hunting and enjoy the weekend ahead!
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|
| Indicative Two-Way Quotes - Benchmark Tenors |
| Benchmark Tenor |
Bid (%) |
Offer (%) |
Mov (t-t0)% |
| 1Yr |
9.90 |
9.70 |
0.00 |
| 2Yr |
10.55 |
10.20 |
0.00 |
| 5Yr |
12.00 |
11.70 |
0.00 |
| 10Yr |
12.90 |
12.60 |
0.00 |
| 15Yr |
13.80 |
13.50 |
0.00 |
| 20Yr |
13.85 |
13.80 |
0.00 |
| 25Yr |
14.00 |
13.75 |
0.00 |
|
|
| Indicative Two-Way Quotes - IFB Series |
| IFB series |
Maturity |
Bid (%) |
Offer (%) |
Mov (t-t0)% |
IFB1/2017/7
(IFB13) |
Nov-24 |
10.35 |
9.90 |
0.00 |
IFB1/2016/9
(IFB10) |
May-25 |
10.35 |
9.90 |
0.00 |
IFB1/2015/12
(IFB8) |
Mar-27 |
10.50 |
10.00 |
0.00 |
IFB1/2017/12
(IFB12) |
Feb-29 |
11.00 |
10.60 |
0.00 |
IFB1/2016/15
(IFB11) |
Oct-31 |
12.50 |
12.25 |
0.00 |
IFB1/2018/15
(IFB14) |
Jan-33 |
12.40 |
12.00 |
0.00 |
IFB1/2018/20
(IFB15) |
Oct-38 |
12.90 |
12.50 |
0.00 |
IFB1/2019/25
(IFB16) |
Feb-44 |
13.00 |
12.50 |
0.00 |
IFB1/2019/16
(IFB17) |
Oct-35 |
12.90 |
12.60 |
0.00 |
IFB1/2020/9
(IFB18) |
Apr-29 |
11.30 |
11.00 |
0.00 |
IFB1/2020/6
(IFB19) |
May-26 |
11.30 |
10.75 |
0.00 |
IFB1/2020/11
(IFB20) |
Aug-31 |
12.60 |
12.50 |
0.00 |
IFB1/2021/16
(IFB21) |
Jan-37 |
12.90 |
12.70 |
0.00 |
IFB1/2021/18
(IFB22) |
Mar-39 |
13.00 |
12.80 |
0.00 |
IFB1/2021/21
(IFB23) |
Aug-42 |
13.00 |
12.80 |
0.00 |
IFB1/2022/19
(IFB24) |
Jan-41 |
13.05 |
12.975 |
0.00
|
|
|
| Key Interest Rates |
|
Mov (bps) |
| O/N Interbank |
4.7564% |
-0.96 |
| 91 Day T-bill |
7.377% |
7.50 |
| 182 Day T-bill |
8.219% |
5.50 |
| 364 Day T-bill |
9.743% |
-0.90 |
| Inflation |
5.56% |
48.00 |
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