One of the most secure investment assets is government bonds. I have received a few questions regarding investing in Kenyan government securities, especially after doing this post on investing in an infrastructure bond that the CBK is floating.
Now, this looks like an investment opportunity meant for the ultra-wealthy and big investment firms. But contrary to popular belief, government securities are easily accessible even by the common Mwananchi. If you're looking for a short-term investment opportunity, Treasury Bills (T-Bills) are available weekly and have a maturity period of less than one year.
On the other hand, Treasury Bonds are more of medium to long-term investment opportunities that can help you save and plan for retirement or your kid's educational purposes. For instance, let's say you have a kid joining the university in the next 15 years. You can invest some money in a 15-year bond. You will be receiving your annual or semi-annual interest payments for 15 years that you can use for their shopping and school fees during their primary and secondary education. And, after the 15 years when the bond is maturity, you will get back your initial investment (capital) that you can put towards their higher education tuition and other expenses.
I'd also want to remind you that you must have a CDS account and a bank account before investing in any government security. It is also important to always read the particular prospectus the CBK releases regarding any security they are floating.
You can also learn more about investing in Kenyan government securities from this post.
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