Best Bond Rates In Kenya

What is Bond Rate?

A bond rating is a grade given to a bond and indicates its credit quality. The rating takes into consideration a bond issuer’s financial strength or its ability to pay a bond’s principal and interest in a timely fashion.

Best Bond Rates In Kenya

Kenya Government Bonds – Yields Curve

Residual MaturityYieldZC Price
LastChg 6M
15 years16.570%-21.27 %
20 years16.632%-28.53 %
25 years16.685%-35.67 %

What bonds pay the best interest?

Best Bonds to Invest In

  • Best bonds to buy.
  • 10-year Treasury Note.
  • I Savings Bonds.
  • iShares TIPS Bond ETF.
  • Nuveen High-Yield Municipal Bond Fund.
  • Vanguard Short-Term Corporate Bond Index Fund.
  • Guggenheim Total Return Bond Fund.
  • Vanguard Total International Bond Index Fund.

How much do I need to invest in bonds in Kenya?

The main difference between Treasury Bills (T-Bills) and Bonds (T-Bonds) is the Tenor i.e. Bonds are longer-term (above 1 year) while Bills are short-term (1 year and below).

The minimum investment amount is Kshs. 100,000 while for the Treasury Bonds, the minimum investment amount is Kshs. 50,000.

Are Kenyan bonds safe?

Security-Treasury Bonds are units of Government Debt meaning you are investing in the Kenyan Government. This makes the asset a secure investment for both retail and institutional investors.

Are bonds taxed in Kenya?

Yes. Withholding Tax of 15% on Treasury bonds with tenors up to 9 years and 10% for Treasury bonds of tenors of 10 years or more is charged on the discount as well as periodic interest payment unless an investor is tax-exempt, in which case a tax exemption certificate must be provided or the investor has made arrangements to pay the tax directly to the Kenya Revenue Authority (KRA).

However, discount and interest earnings from infrastructure bonds as defined under the CMA and KRA Acts do not attract any form of tax.

Are Kenyan government bonds a good investment?

In 2017, the Kenyan Treasury launched M-Akiba, a five-year infrastructure bond that individuals can purchase, hold, and trade through their mobile phones.

Returns on government infrastructure bonds in Kenya are high (around 12 percent in 2018) and the investments are essentially risk-free.