Updated 18 October 2026
This infrastructure bond calculator shows what a tax-free Kenyan IFB pays. The latest infrastructure bond sale was the August 2026 reopening of IFB1/2019/016, IFB1/2021/018 and IFB1/2021/021, with coupons of 11.750%, 12.667% and 12.737%.
Rates are what was last published, gross of tax. Money market funds are compounded monthly; bills, bonds, deposits and SACCO returns are worked out as simple interest. Your actual return will differ.
The calculator is preloaded with the 12.737% coupon of IFB1/2021/021 and a 0% tax rate. Swap in another coupon if you hold a different bond, and compare with the rest on the investment returns calculator.
Infrastructure bond interest rates in 2026
At the August 2026 sale, which settled on 17 August, the average accepted yields were 12.1960% for IFB1/2019/016 (maturing October 2035), 12.6877% for IFB1/2021/018 (March 2039) and 13.0520% for IFB1/2021/021 (August 2042). CBK took KES 312 billion against KES 460.4 billion in bids.
Why infrastructure bonds pay more after tax
Interest on infrastructure bonds is exempt from withholding tax, so the coupon is what you keep. A 12.737% coupon on KES 500,000 pays about KES 63,685 a year, with nothing deducted. A normal bond with the same coupon would lose 10% or 15% to tax.
Amortisation
Many IFBs return part of the principal before maturity. IFB1/2021/021, for example, pays back 50% of the face value on 1 September 2031. After that, coupons are paid on the remaining half, so your income drops.
Minimum investment and how to buy
The minimum is KES 50,000 through CBK DhowCSD, during the sale period in the prospectus. Existing bonds can be bought or sold on the NSE through a stockbroker.
Frequently asked questions
Are infrastructure bonds tax-free in Kenya?
Yes. Interest on infrastructure bonds is exempt from withholding tax.
What was the latest infrastructure bond rate?
The August 2026 reopening had coupons of 11.750%, 12.667% and 12.737%.
What is the minimum for an infrastructure bond?
KES 50,000.
How to Use This Calculator
- Enter the amount you plan to invest, or already hold, at face value.
- Enter the coupon rate of your bond. The calculator is preloaded with one recent issue, but you can change it.
- Leave the tax rate at 0%, because infrastructure bond interest is tax exempt.
- Read the yearly and half yearly interest figures. Coupons on Kenyan bonds are paid twice a year.
Coupon Versus Yield
The coupon is the fixed interest rate the bond pays on its face value. The yield is the return you actually earn based on the price you pay. When a bond is reopened, investors often buy at a price above or below face value, so the yield can differ from the coupon. The calculator works on the coupon, so it shows the cash interest you will receive on the face value you hold.
How to Buy an Infrastructure Bond
Open an account on the Central Bank of Kenya DhowCSD platform with your ID, KRA PIN and bank details, watch for auction notices, place a bid during the sale period and pay by the deadline. See our guide on how to buy Treasury bills, which follows the same DhowCSD steps.
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