Treasury bill return
What you pay, what you get back, and what the annualised return works out to on a 91, 182 or 364-day bill — after withholding tax.
You pay today
—
and get — back in — days.
Interest, after tax
—
Effective annual return
—
Show the working
A Treasury bill pays no coupon. You buy it below face value and receive the full face value at maturity, and the gap is your interest. Withholding tax is deducted at source, so the rate quoted at auction is never what you keep. The effective annual return compounds the holding-period return across a year, which is the only fair way to compare a 91-day bill with a 364-day one.
Auction rates are published by CBK after every auction — see the results. Minimum face value is typically KSh 100,000 for bills; check the current prospectus before you commit. Nothing here is a recommendation to buy anything.
The number is half of it. Knowing why it moved is the other half.
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