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Central Bank of Kenya

Infrastructure Bond IFB1/2019/016

Infrastructure bond · Regulated by the CBK

What is this?

You lend money to the Kenyan government to build roads, power and water. It pays you interest twice a year and the interest is not taxed. This one has about 9.3 years left to run.

If you lend KES 50,000

It pays you a year
KES 5,875
Tax takes
Nothing
You keep, a year
KES 5,875
Over the whole term

We do not print a lifetime total for this one. 50% of your money is repaid before maturity, and the interest after that is paid only on what is still lent — so the yearly figure above holds until that date and falls afterwards.

Paid in two instalments a year, straight to your bank account.

  • · Based on lending KES 50,000, the smallest amount accepted, for 9.3 years.
  • · The interest is not taxed, so what is paid to you is what you keep.
  • · The interest is paid out to you, not added back in. It only compounds if you reinvest it yourself.
  • · 50% of your money is paid back before the end. After that the interest is worked out on what is still lent, so the yearly figure above applies until then and drops after it.
  • · Worked out from the issuer's own published terms.

The details that matter for this kind of plan

Tax on the interestNone. Infrastructure bonds are exempt.
Who you are lending toThe Republic of Kenya, through the Central Bank
Matures8 October 2035
ISINKE6000005543
Paid back early50% of what you lent, before maturity
How to buy itThe first sale closed on 12 August 2026. You now buy it on the Nairobi Securities Exchange through a stockbroker.

What does it cost you?

Taken off each payment you makeNothing
Admin chargeNothing
Charge for taking money outNothing

What if you stop paying?

There is nothing to keep paying. You lend once and the interest comes to you.

What if you need the money early?

You cannot ask the government for it back early. You can sell it on the Nairobi Securities Exchange, at that day's price.

Who this suits

It could work for you if

You want a fixed income for years. You will not need the money back. The tax break matters more to you than being able to get out fast.

Think twice if

You might need the money back. Selling early means taking whatever price the market gives you that day.

How openly does this company explain its charges?

ATells you what it costs12 of 12 answered
  • What do they charge you every year?
    This kind of charge does not exist on this product.
  • What is taken off the money you pay in?
    Nothing. They state there is no charge here.
  • What does it cost to get out early?
    There is nothing to cash out, so there is no exit charge.
  • What is the smallest amount you can start with?
    KES 50,000.
  • How long is your money tied up?
    Not at all. You can take it out whenever you want.
  • Is the advertised return before or after their charges?
    Before charges. Their fees still come off this.
  • Do they warn you the return is not guaranteed?
    This kind of product does not advertise a return.
  • Do they tell you what you get back if you stop early?
    You get whatever your money is worth on the day. There is no schedule.
  • Do they list what is not covered?
    This is not insurance, so there is nothing to exclude.
  • Are all their charges published?
    Yes, every charge they mention has a figure against it.
  • Do they say who regulates them?
    Yes — the CBK. That is who you complain to.

This grades how openly things are explained, not whether the plan is good or bad. See how we work it out.

Things to know before you sign

  • · The smallest bid is KES 50,000 of face value, and bids go up in multiples of KES 50,000.
  • · You need a CSD account with the Central Bank. Opening one is free and is done through the DhowCSD app or portal.
  • · These bonds are listed on the Nairobi Securities Exchange. Selling before maturity means taking the price the market offers that day, which can be less than you paid.
  • · The Central Bank will buy a bond back early only as a last resort, and charges 3% above the going rate to do it.

Talk to them

Compared with the others

There are 2 other plans of this kind on the board. See all 3 side by side — what each one leaves you with, and which of them will not say.

How current is this rate?

The 11.75% on this page is the rate Central Bank of Kenya guaranteed, as at 2026-08-22 — current.

the coupon the government pays each year on the amount you lend, split into two payments.

Where we got this