Browsing: Government Bonds

• The rising fed rates have led to expensive loans as Kenya struggles to curb inflation
• Although global inflation has generally eased, rapid monetary policy tightening in advanced economies has sharply tightened global financial conditions.
• According to the CBK governor, Kenya should brace for a challenging 2024, including tightening global conditions that will cascade to local levels

Kenya is still at risk of bearing the impacts of new global threats like rising fed rates that may emerge in 2024, financial industry sector players have revealed.

In the past year, the country has confronted challenges ranging from the war in Ukraine, the prolonged drought that affected the country, rising federal rates, and high global inflation.

The rising fed rates led to expensive loans as the country struggled to curb inflation, which currently stands at 6.9 per cent.

Financial experts from Standard Chartered project that the rising fed rates will ease from mid …

Uganda’s Central Bank appointed seven banks to compete at its auctions of treasury bonds and bills, reforming the primary dealership system in a bid to bolster the country’s economy.

At each auction, the primary dealer banks will bid above $54,040.08 and then resell the bonds to other investors on the secondary market.

The primary dealer banks include Centenary, ABSA, bank of Baroda, Development Finance Company of Uganda (DFCU), Stanbic Bank, Housing Finance Bank and Standard Chartered Bank. Experts in Uganda say that the move will improve the attractiveness of the country’s treasuries to investors at home and overseas.

These investors include overseas buyers, non-primary dealer commercial banks, firms and ordinary Ugandans that are looking to enjoy interest payments from government and to use the treasuries as collateral.

“In order to enhance liquidity in the secondary market, effective October 01, 2020, competitive bidding in the primary market for Government securities shall …