Treasury Bond Calculator Kenya 2026

Updated 20 October 2026

Use this Treasury bond calculator to estimate the coupon income from a Kenyan government bond after tax. The most recent long bond in October 2026 was the reopened FXD1/2026/030, a 30-year bond with a 12.5% coupon, which the Central Bank of Kenya (CBK) sold at a weighted average yield of 14.183% in the auction dated 19 October 2026. CBK accepted KSh 33.9 billion of the KSh 60.1 billion bid. The bond matures on 13 March 2056.

The rate field holds the 12.5% coupon. Change it to the coupon of any bond you are looking at. Compare bonds with other options on the investment returns calculator.

Treasury bond interest rate and coupon

The coupon is the fixed rate the government pays on the face value, every six months. The yield you get depends on the price you pay. A bond bought below face value yields more than its coupon, which is why FXD1/2026/030 yielded about 14.18% even though the coupon is 12.5%.

How much KSh 500,000 earns in a Treasury bond

At a 12.5% coupon, KSh 500,000 of face value pays KSh 62,500 a year before tax, in two payments of KSh 31,250. After the 10% withholding tax that applies to bonds of 10 years and above, you keep KSh 56,250 a year.

Tax on Treasury bonds

Withholding tax on bond interest is 15% for bonds shorter than 10 years and 10% for bonds of 10 years and longer. Infrastructure bonds are exempt. Set the tax field to match your bond.

Coupon, yield and price

Three numbers matter when you compare bonds. The coupon is fixed for the life of the bond and decides the cash you receive. The yield is the return you lock in at the price you pay, and it moves with market rates. The price is quoted per KSh 100 of face value. When market yields are above a bond’s coupon, as with FXD1/2026/030, the bond sells below KSh 100, so you pay less than face value but still receive coupons on the full face value and get KSh 100 back at maturity. The calculator above works on the coupon, so it shows the cash income, not the full yield.

Example: what the cash flows look like

Buy KSh 1,000,000 of face value of a 12.5% bond held to maturity. Every six months you receive KSh 62,500 before tax, or KSh 56,250 after the 10% withholding tax for a bond of 10 years or more. Over a full year that is KSh 112,500 after tax. Coupons are paid into the bank account linked to your CBK DhowCSD account, so they do not compound unless you reinvest them yourself, for example in a money market fund or in Treasury bills.

Risks to understand

Government bonds are among the safest shilling investments, but they are not risk-free. If you need cash early, you must sell on the bond market, and the price you get depends on yields at the time: if yields have risen, you may sell at a loss. Long bonds such as a 30-year paper move more in price than short ones. Inflation also eats into a fixed coupon over many years. Match the bond’s maturity to when you will need the money.

Minimum investment and how to buy

The minimum is KSh 50,000. You open a CBK DhowCSD account online, then bid during the sale period shown in the monthly prospectus that CBK publishes. You can place a competitive bid, naming the yield you want, or a non-competitive bid, which accepts the average yield of the auction. Bonds can be sold before maturity on the NSE bond market through a stockbroker.

Frequently asked questions

What is the minimum for a Treasury bond in Kenya?

KSh 50,000 through DhowCSD.

How often do Treasury bonds pay interest?

Every six months.

What tax applies to Treasury bonds?

15% withholding tax for bonds under 10 years and 10% for 10 years and above. Infrastructure bonds are exempt.