Primary Market Calculator
What it does
The Primary Market Calculator computes the exact cash settlement amount when you bid for a Kenya Treasury Bond at a CBK auction. Kenya uses a full-price (dirty-price) settlement convention — meaning you pay the clean price plus any interest that has accrued since the bond's last coupon date.
Given your face value, the bond's coupon rate, your bid yield, and the settlement date, the calculator returns: accrued interest, the clean price per KES 100, the full dirty price per KES 100, and the total KES amount you will pay on settlement day.
When to use it
- Before submitting an auction bid — know exactly how much cash you need in your CDS account.
- To compare the cost of two different bonds at different bid yields.
- To verify the settlement amount shown on your broker's transaction note.
- When re-opening bonds are offered — the accrued interest portion can be significant and catches many investors off guard.
FXD1/2026/2 — bidding at a CBK re-opening auction
The CBK re-opens FXD1/2026/2, a 2-year bond with a 16.00% coupon. The bond was originally issued on 19 Feb 2024 (settlement date) and matures on 19 Feb 2026. You want to invest KES 1,000,000 face value and plan to bid at a yield of 15.75%.
The re-opening settles on 20 Sep 2024. Since the bond last paid a coupon on 19 Aug 2024, only 32 days of interest have accrued. The calculator shows you the exact amount to fund before settlement.
Example output
| Field | Value | Notes |
|---|---|---|
| Face Value | KES 1,000,000.00 | Your bid amount |
| Coupon Rate | 16.00% | Fixed semi-annual coupon |
| Bid Yield | 15.75% | Your auction bid |
| Days Accrued | 32 days | Since last coupon date (19 Aug 2024) |
| Accrued Interest | KES 14,027.40 | 32 / 365 × 16% × 1,000,000 |
| Clean Price | KES 100.37 per 100 | Present value of future cash flows at 15.75% |
| Dirty Price (Full Price) | KES 101.77 per 100 | Clean price + accrued interest per 100 |
| Total Settlement Amount | KES 1,017,673.00 | What you pay on 20 Sep 2024 |
You need KES 1,017,673 in your CDS account — KES 17,673 more than the face value. The extra amount is the premium (because your bid yield is below the coupon rate) plus accrued interest.
Column reference
| Column | Description |
|---|---|
| Face Value | The nominal amount you are purchasing. Kenya's minimum bid is KES 50,000. |
| Coupon Rate | The bond's fixed annual interest rate as set at issuance. |
| Bid Yield | The yield you submit in the auction. Lower bids are preferred in a Dutch auction. |
| Settlement Date | The date your CDS account is debited and you receive the bond. |
| Days Accrued | Calendar days from the last coupon payment date to the settlement date. |
| Accrued Interest | Interest earned by the previous holder: days / 365 × coupon rate × face value. |
| Clean Price | Price excluding accrued interest, expressed per KES 100 of face value. |
| Dirty Price | Clean price + accrued interest per KES 100. This is the actual price you pay. |
| Total Settlement | Dirty price × face value / 100. The exact KES debit on settlement day. |
Limitations
- Uses the actual/365 day-count convention (Kenya standard). Results may differ from Bloomberg which defaults to actual/actual.
- Does not account for withholding tax (WHT) on coupons — use the Tax Report for that.
- Assumes semi-annual coupon payments. Treasury Bills (T-Bills) use a discount pricing model and are not covered by this calculator.
- The CBK may apply a different rounding convention on the final settlement figure by a few shillings.
When bidding at re-openings, always run the calculator before funding your account. Accrued interest on a bond that last paid 5 months ago can add 6–7% on top of the face value.