Eurobond set to ease interest rate on domestic borrowing

Move linked to less government demand for cash as a result of successful sovereign bond. FILE PHOTO | AFP

The yield or interest rate on domestic debt is likely to come down in the next few weeks on reduced government demand for cash as a result of the successful issuance of the sovereign bond, analysts have said.

The government has been under pressure to finance the budget deficit, which it projects will stand at 7.2 per cent of GDP or Sh621 billion by the end of the current fiscal year.

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