Kenya Treasury Bond Calculator (FXD and IFB)
Every interest payment a Kenyan Treasury or infrastructure bond pays from the day you buy it, after withholding tax, plus accrued interest and yield to maturity, in KES.
Kenya CBK conventions and KES. Not in Kenya? Use the general calculator.
| Price (100 per 100) | KES 100,000.00 |
|---|---|
| Accrued interest (0 days) | KES 0.00 |
| Each interest payment, before tax | KES 6,500.00 |
| Current yield | 13.00% |
| Gain at maturity (face value − price) | KES 0.00 |
| Tax on interest | KES 13,000.00 |
Payment schedule
| Date | Interest | Tax | Face value | You receive |
|---|---|---|---|---|
| 23 Apr 2027 | KES 6,500.00 | KES 650.00 | — | KES 5,850.00 |
| 23 Oct 2027 | KES 6,500.00 | KES 650.00 | — | KES 5,850.00 |
| 23 Apr 2028 | KES 6,500.00 | KES 650.00 | — | KES 5,850.00 |
| 23 Oct 2028 | KES 6,500.00 | KES 650.00 | — | KES 5,850.00 |
| 23 Apr 2029 | KES 6,500.00 | KES 650.00 | — | KES 5,850.00 |
| 23 Oct 2029 | KES 6,500.00 | KES 650.00 | — | KES 5,850.00 |
| 23 Apr 2030 | KES 6,500.00 | KES 650.00 | — | KES 5,850.00 |
| 23 Oct 2030 | KES 6,500.00 | KES 650.00 | — | KES 5,850.00 |
| 23 Apr 2031 | KES 6,500.00 | KES 650.00 | — | KES 5,850.00 |
| 23 Oct 2031 | KES 6,500.00 | KES 650.00 | — | KES 5,850.00 |
| 23 Apr 2032 | KES 6,500.00 | KES 650.00 | — | KES 5,850.00 |
| 23 Oct 2032 | KES 6,500.00 | KES 650.00 | — | KES 5,850.00 |
| 23 Apr 2033 | KES 6,500.00 | KES 650.00 | — | KES 5,850.00 |
| 23 Oct 2033 | KES 6,500.00 | KES 650.00 | — | KES 5,850.00 |
| 23 Apr 2034 | KES 6,500.00 | KES 650.00 | — | KES 5,850.00 |
| 23 Oct 2034 | KES 6,500.00 | KES 650.00 | — | KES 5,850.00 |
| 23 Apr 2035 | KES 6,500.00 | KES 650.00 | — | KES 5,850.00 |
| 23 Oct 2035 | KES 6,500.00 | KES 650.00 | — | KES 5,850.00 |
| 23 Apr 2036 | KES 6,500.00 | KES 650.00 | — | KES 5,850.00 |
| 23 Oct 2036 | KES 6,500.00 | KES 650.00 | KES 100,000.00 | KES 105,850.00 |
| Total | KES 130,000.00 | KES 13,000.00 | KES 100,000.00 | KES 217,000.00 |
How the calculator works
- Interest dates fall every 12, 6 or 3 months counted from the issue date, with the last payment on the maturity date, together with the face value.
- Each payment is face value × interest rate ÷ payments a year. Tax is taken from each payment.
- Accrued interest: buying between interest dates, you pay the seller the interest earned since the last payment (days since it ÷ days in the period × one payment). The next payment gives it back in full.
- Current yield is a year's interest ÷ the price. Yield to maturity is the yearly rate, compounded at each payment, at which every payment you'll receive is worth exactly what you pay today. It counts the gain or loss at maturity, so it's the figure to compare bonds with.
Buying at a price below 100 adds a gain at maturity; above 100, a loss. Either way the interest payments stay the same.
Kenyan Treasury bonds
- CBK issues fixed-rate Treasury bonds (FXD) and infrastructure bonds (IFB) through monthly auctions. Most pay interest twice a year.
- Interest is taxed at source: 15% for most bonds, 10% for bonds with an original term of 10 years or more. Infrastructure bonds are tax-free, which is why their yields compare well.
- Some infrastructure bonds repay part of the face value in instalments before maturity. This calculator assumes it is all repaid at maturity; Clarifolio's ledger handles instalments.
- You can buy at an auction through CBK's DhowCSD, or on the secondary market at the Nairobi Securities Exchange through a broker.
Estimates to help you plan, not financial or tax advice. Rates, conventions and tax rules change: check the figures against your own statement, CBK's auction results and KRA.
Frequently asked questions
How often do Kenyan Treasury bonds pay interest?
Twice a year, every six months from the issue date, with the last payment and the face value on the maturity date.
What is the withholding tax on Kenyan bond interest?
15% for most Treasury bonds and 10% for bonds with an original term of 10 years or more. Infrastructure bonds (IFBs) are tax-free. Rates can change with each Finance Act, so check KRA for the current rate.
What is the minimum investment in a Kenyan Treasury bond?
50,000 shillings of face value at a primary auction, through CBK's DhowCSD or a bank or broker.
How do I read a bond name like FXD1/2024/10?
FXD is a fixed-rate Treasury bond, 1 is the issue number that year, 2024 is the year of issue and 10 is the term in years. IFB means an infrastructure bond.