Corporate Bonds

Corporate bonds in Kenya are debt instruments issued by private companies to raise funds. Investors provide loans to these companies in return for periodic interest payments and repayment of the bond’s principal amount upon maturity. These bonds are traded on the Nairobi Securities Exchange (NSE) and overseen by the Capital Markets Authority (CMA). Corporate bonds provide an alternative to government securities, often offering higher returns, but they carry additional risks depending on the creditworthiness of the issuing company. Investors typically assess factors like the company’s financial stability, bond terms, and market conditions before making investment decisions.

The Board of Trustees assures members that market volatility is cyclical, and the Scheme’s strategies have adopted long-term investment approaches designed to manage short-term market fluctuations. Their focus remains on ensuring a sustainable fund for all Scheme Members.