Treasury faces renewed rate pressure in June bond sale

DNCBK2712C

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

Interest rate demands by investors in the June infrastructure bond are likely to exceed the 15 percent mark, fixed income analysts say, in what promises to test the government’s resolve of keeping a lid on borrowing costs in a period of fiscal strain.

The Sh60 billion offer, whose sale closes on Wednesday, is expected to attract healthy investor appetite due to its tax-free status and a relatively short tenor of seven years.

PAYE Tax Calculator

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