Most investors agree that for the short term,bonds offer greater security and return. The situation changes,however,when time spans of longer than 10 years are considered. The stock market has consistently outperformed bond investments by a large factor. This is because companies continue to increase in value and any short term fluctuations in the stock market are smoothed out over time.

Bonds still have their place in most portfolios,however. They provide a stable investment which helps to cushion against stock market fluctuation. A mixture of investments including stocks from various industries,bonds and other fixed-income investments is the way to provide maximum growth while securing your investment funds for the future.

www.conceptadvisoryservices.co.ke...Investment agents

As the government resorts to borrowing heavily from the domestic market,what effect does this have on interest rates and bond yields or redemptions?

this will help comparison with select shares.

given the option btw Kengen bond & kengen share,i wouldnt consider buying a 100k worth of KIBO not even a million.... its better off in the share,i still hold ma earlier position from another thread.... with 5m + i'd go for the bond... less than that,shares (offcourse not kengen only) main reason being ease of disposing it just incase interest rates decides to go up especially now that the govt is borrowing heavily from the public,this might push the rates northwards to make em attractive and as a result bond prices suffer.....

another part of me still subcribes to the rough guide that 'bonds are directly proportional to one's age' such that if am 30 yrs old,30% of my portfolio should be fixed income e.g bonds the balance equities....

Its just me
whatever choice you make in life make sure that you can live with it.

Too big to fail? Like enron,lehman or uchumi?
Ten years is a long time,who knows what the world will look like.

Am not pushing any agenda,I don't mind anyone buying the bond,i am jus realistic about what it offers

Return here every 24 months with your inflation battered 12.5% p.a. return and compare:-

Kengen vs SCOM (SCOM the most profitable firm in EA considering share consolidation/buyback. Ksh 3.80)


Kengen vs KQ (Despite increased wage bill,fuel hedges off in next year and international travel set to pick up with most economies beginning to pickup. Slumped at Ksh 21.75)


Kengen vs KCB (4% growth in previous quarters. With less risk aversion this financial is still solid and set to gradually recover. Ksh. 20.50 throwaway price)


Kengen vs HFCK (HFCK recording great growth in a depressed economy in a booming construction sector. new product launch soon for the middle class set to shuttle this into more steady gear)


Kengen vs NBK (dividends start trickling in next year and inevitable management change looms in the mid-term. need any more reason. trading at Ksh 35/= )

NB: This omits the entry of Orange or Family Bank into the NSE.

Let the future speak for itself. What say you?