Central Bank eyes Sh50 billion from October T-bond sales

At current levels, the returns on long term government bonds are still substantially higher compared to other fixed income assets.

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The Central Bank of Kenya (CBK) is seeking to raise Sh50 billion from the sale of two reopened bonds in October, sticking to auctions of long-term securities to reduce maturity risk.

The government’s fiscal agent is offering a 15-year paper with a coupon (fixed interest rate) of 12.65 percent and a 20-year bond with a coupon of 13.444 percent.

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Note: The results are not exact but very close to the actual.