Government bonds: Risk-free or low risk?

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    Are government securities truly risk free? Nearly Sh800 billion of Kenya’s Sh5.5 trillion government domestic debt is held by individual investors. With such significant exposure, concerns about a potential government payment default are becoming increasingly relevant. Despite the high returns offered by government bonds—outperforming all other asset classes—are we overlooking the risks? Have we invested too much trust in these bonds?

    In this episode of Make Money, join us as we explore the balance between risk and reward in government bonds, with insights from Stellar Swakei, Senior Research Associate at Standard Investment Bank (SIB).

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