Banks anxious as term depositors opt for direct T-bills, bonds purchases

Treasury Bonds

February’s tax-free infrastructure bond for instance delivered a coupon/interest rate of 18.46 percent making it the highest-grossing asset in 2024.

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An option granted to investors by the Central Bank of Kenya (CBK) to directly purchase government securities, including Treasury bills and bonds, through a digital portal has rattled commercial banks amid an exodus of clients.

CBK in July 2023, launched an improved over-the-counter trading platform dubbed DhowCSD that has allowed investors to open and transact on the central security depository (CSD) accounts from the convenience of smartphones and the internet.

PAYE Tax Calculator

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