CBK Reopens Long-Term Treasury Bonds as Investors Shift to Higher Yields

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The Central Bank of Kenya (CBK) reopened two fixed coupon Treasury bonds this week: FXD1/2018/020 and FXD1/2018/025. FXD1/2018/020 has a remaining term of 12.8 years and offers a coupon rate of 13.2%, while FXD1/2018/025 has 18 years to maturity and offers a 13.4% coupon. Both require a minimum investment of Ksh 50,000. These reopened papers are expected to attract long-term investors looking to lock in higher returns amid shifting yield trends.

Meanwhile, Treasury bills were undersubscribed at 60.37%. The government raised Ksh 14.4 billion out of the Ksh 24 billion offered, with the 364-day paper receiving the most interest at 118.4% subscription. Investor appetite continues to lean toward longer tenors.

Treasury bills were undersubscribed at 60.37 percent. The government raised Ksh 14.4 billion out of the Ksh 24 billion offered

Umeme Limited, the Ugandan power distributor, declared an interim dividend of UShs 222 per ordinary share for the year ending 31st December 2025. The dividend will be paid to shareholders on or before 31st July 2025, with books closing on 14th July 2025.

Williamson Tea Kenya declares a Ksh 10 per share dividend, despite posting a loss of Ksh 200 million.

The loss was largely attributed to difficult trading conditions and the cyclical nature of the rain-fed agricultural business.

In contrast, Kapchorua, its sister company, reported a profit of Ksh 181.2 million for the year ended 31st March 2025 and declared a more generous dividend of KSh 25.00 per share.

Corporate Updates

Equity Group Holdings has received shareholder approval to establish a Representative Office in the United Arab Emirates. The proposed office aims to connect with diaspora and international clients and strengthen the Group’s regional footprint, subject to regulatory approval.

Absa Bank Kenya launched a new business credit card tailored for micro, small, and medium enterprises (MSMEs), in partnership with Visa. Announced during the 2025 Absa SME Business Forum, the card offers up to 50 days of interest-free credit, global emergency support, and digital tools for expense tracking.

Cardholders will also benefit from value-added services through over 40 global business service providers.

Kenya Re appointed Erick Onyango Gumbo as its new Board Chairman, effective 23rd June 2025.

Mr. Gumbo is the Managing Partner at G&A Advocates LLP and an Advocate of the High Court of Kenya.

NCBA Bancassurance Intermediary Limited hosted a special customer dinner in Mombasa, as part of the bank’s ongoing commitment to connect with retail and SME clients.

During the event, speakers shared valuable insights on how insurance and investments can help businesses manage risk and plan for a resilient future.#NCBABancassurance

FA Catherine Karita, MCSI, has been elected as the new Chairperson of the Institute of Certified Investment and Financial Analysts (ICIFA)

Regulatory Updates

NSE suspends trading of TransCentury and East African Cables.

The suspension follows the placement of TransCentury under receivership and East African Cables under administration, with George Weru and Muniu Thoithi of PwC appointed as joint receivers and managers effective June 20, 2025.

From Abojani

In celebration of World MSME Day, we sat down with Elizabeth Wasunna-Ochwa, Business Banking Director at Absa Bank Kenya, to share insights on the vital role SMEs play in driving the Kenyan and African economies. Watch the full conversation here.
#MSMEMonth #WorldMSMEDay

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