We are however, now faced with two challenges of dealing with bullet maturities and need to smoothen the redemption profile. Over the Counter Trading (OTC) is not in place though the Capital Markets Authority (CMA) is working on modalities to enable bonds to trade outside of the exchange. Foreign investors hold about Ksh.80bn of total local currency outstanding Government securities.
We have been more successful in issuing large volumes in infrastructure bonds than in the conventional benchmark bonds. Ideally, we would have wished to issue at least one bond of each benchmark tenor once in a year to keep on refreshing pricing of money for every tenor along the curve.