This is officially the week of love. For love fanatics, it is the week when no cost is spared to indulge and spoil one’s object of love.
However, to those born in the village like me, the day means nothing much -just another day. Forgive my ‘ushamba’ but I only learned of the day of Valentine’s for the first time while I was in college. This partly explains why the day means nothing much to me. I am sure I have good company here, even for many who chose to join the bandwagon after their eyes were opened to the day of love.
As for me, you’ll forgive me for this was buried away from my world for the best and impressionable 20 years of my life. Thus, no matter what I may pretend to do, it can never become part of my way of living in February.
That is not to mean in any way that there is anything wrong with those who celebrate the day. Far from it, this column wishes each one of our fans a lovely Valentine’s Day from the bottom of our hearts. We honour your choices and celebrate you as you celebrate your love.
It is out of this debt of love that I share this interesting coincidence for the 2024 Valentine’s Day. I am not quite sure if it is pure coincidence or if it was a deliberate way of gifting their loyal investors; but the Central Bank of Kenya has placed on offer an 8.5-year Infrastructure Bond that closes on Wednesday, 14th February, 2024. It is expected to achieve a fixed coupon rate of 19-20%. We shall know the actual rate the morning after Valentine’s Day!
Here is why I find this as a strange coincidence or interesting dilemma:
- The last time a government bond breached the 20% coupon was more than 10 years ago – this should have been back in 2011/12 when a 2-year bond hit a coupon rate of 22%. This was followed by another one that attained 18% before they declined to the averages of 10-13.5% up to the current bout of high interest rates. Technically, this bond presents a huge opportunity cost for lovers who are considering blowing out a tidy sum on the night of 14th Feb. 2023;
- The actual interest rate will be known on the day when many lovers suffer from what marketers call post-purchase dissonance. I know it is worth investing in those we love, but even in such circumstances, it is worth being alive to the economic realities around you. Unfortunately, Valentine’s is more of the commercial side of the day, than what it was originally meant to be;
- The payoffs presented by the two options demonstrate the practicality of instant vs delayed gratification in economics – the returns of Valentine’s Day spending are largely short-lived before hitting the hard realities the morning after, but this bond promises a huge return that may nourish your mind and soul for several months and years ahead;
- The present dilemma is a good characterization of financial maturity in decision-making -those who can comfortably take both opportunities, represent a rare species of men and women who can financially have their cake and eat it. Unlucky for the majority of us, the economic circumstances may not allow us to pursue both opportunities at the same time, presenting a choice of one or the other;
- Finally, the bond is an alluring invitation to the world of money against the selfish demands of the physical body. While the two are fine to have, it mostly demands insubordination of the one to enjoy the other on a future day. This provides hard choices for those who desire a world of money free of wants. The choice can only be made by you and you alone.
Otherwise, happy and blessed Valentine’s Day and a week of love ahead!