3 Treasury bill plans, side by side
You lend to the government for a year or less. You buy below face value and are paid the full amount at the end; the difference is your interest.
How this is ordered
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.
The example: KES 5,000 a month for 5 years.
| Plan | Coupon | Tax takes | You keep, a year | Won't say |
|---|---|---|---|---|
| Treasury Bill, 364 daysCentral Bank of Kenya | 9.0365% a year | KES 678 | KES 3,841 | nothingA |
| Treasury Bill, 182 daysCentral Bank of Kenya | 8.948% a year | KES 671 | KES 3,803 | nothingA |
| Treasury Bill, 91 daysCentral Bank of Kenya | 8.77% a year | KES 658 | KES 3,727 | nothingA |
- · Treasury Bill, 182 days: before charges. the average rate bidders accepted at the last weekly auction
- · Treasury Bill, 364 days: before charges. the average rate bidders accepted at the last weekly auction
- · Treasury Bill, 91 days: before charges. the average rate bidders accepted at the last weekly auction
Grades measure how openly a company explains its charges, not whether a plan is good. How we work them out.