Fixed Income Trading

This involves trading in Government Treasury Bills and Bonds, as well as Corporate Bond Issues. This asset class yields cash flows in form of Fixed Interest, payable to Investors semiannually for a specific period of time. The Principal Amount is paid at end of this period (Maturity) alongside last outstanding interest. The issuer of Kenyan Government Bills and Bonds is the Central Bank of Kenya (CBK).

Withholding Tax at a rate of 10% or 15% is levied on Interest Receivable. However, as an incentive, CBK occasionally issues Tax Free ones referred to as Infrastructure Bonds. Treasury Bills are issued weekly for either 91, 182 or 364 days. On the other hand, Treasury Bonds are issued monthly with current tenures from 2 to 30 years.

Corporate Bonds are issued by companies for periods normally 3 to 7 years. In the event of a company’s bankruptcy, fixed income investors are often paid before common stockholders.

Sterling is well placed to offer these services through the following:

• Sales and trading staff covering East Africa (Kenya, Uganda, Tanzania and Rwanda)
• Sales and trading staff covering an Africa fixed income desk (South Africa)