Rising T-bill rates set stage for expensive loans

DNCBK2712C

The Central Bank of Kenya in Nairobi. FILE PHOTO | NMG

Rising interest rates on short ended Treasury bills have set the stage for costlier bank loans with yields on all three papers now standing above 11 percent.

Yields on the 91-day paper for instance crossed the threshold in this week’s auction, reaching a return of 11.103 percent from 10.832 percent last week.

PAYE Tax Calculator

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