Inside Kenya’s costly Sh1.6trn infrastructure bonds binge


The National Treasury building in Nairobi in this picture taken on March 15, 2023. PHOTO | DENNIS ONSONGO | NMG

The Treasury is foregoing at least Sh23.5 billion annually in tax incentives to entice buyers of infrastructure bonds (IFBs), which have emerged as the easiest path to the domestic debt market for the government.

Infrastructure bonds carry a tax-free status, in contrast to other government securities which are levied a withholding tax of 10 percent for those of a tenor of more than five years and 15 percent for those of five years and below.

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