Infrastructure bond plans, side by side
A government bond that funds roads, power and water. It works like any other Treasury bond except the interest is not taxed.
On this example, Infrastructure Bond IFB1/2021/021 from Central Bank of Kenya comes out ahead: KES 6,369.
Ordered by what you actually keep after tax, not by the coupon printed on the bond. On these the tax is the comparison: an exempt bond beats a taxed one paying the same rate by about a fifth of the interest.
| Plan | Coupon | Tax takes | You keep, a year |
|---|---|---|---|
| Infrastructure Bond IFB1/2021/021Central Bank of Kenya | 12.737% a year | Nothing | KES 6,369 |
| Infrastructure Bond IFB1/2021/018Central Bank of Kenya | 12.667% a year | Nothing | KES 6,334 |
| Infrastructure Bond IFB1/2019/016Central Bank of Kenya | 11.75% a year | Nothing | KES 5,875 |
- Infrastructure Bond IFB1/2021/021Central Bank of Kenya
- Coupon
- 12.737% a year
- Tax takes
- Nothing
- You keep, a year
- KES 6,369
- Infrastructure Bond IFB1/2021/018Central Bank of Kenya
- Coupon
- 12.667% a year
- Tax takes
- Nothing
- You keep, a year
- KES 6,334
- Infrastructure Bond IFB1/2019/016Central Bank of Kenya
- Coupon
- 11.75% a year
- Tax takes
- Nothing
- You keep, a year
- KES 5,875
Every figure here is worked out from the company's own published terms.