Kenya’s Infrastructure Bonds: Everything You Need to Know.

Kenya’s tax-free infrastructure bonds are a big deal for investors and the nation! ??

They save investors KSh 25.8 billion annually in tax breaks, offering relief of 10% to 15% compared to taxed securities. These bonds are super attractive, especially to banks and pension funds, thanks to their high returns—like the recent 20-year bond yielding over 14%!Not only do these bonds fund major infrastructure projects like roads and energy, but they also reduce reliance on expensive foreign debt and boost economic growth.

Currently, 24 bonds are trading on the Nairobi Securities Exchange (NSE), worth KSh 1.8 trillion and making up 37% of all bonds in Kenya!But it’s not all smooth sailing. The government forfeits significant tax revenue, and retail investors face barriers accessing these bonds.

A proposal to tax new bonds (5% for locals, 15% for foreigners) was rejected by Parliament to keep the bonds attractive.To make infrastructure bonds even better, we need to:

?? Keep them tax-free for all investors.

?? Make them accessible to retail investors.

?? Raise awareness so more people can invest.

?? Ensure transparency in fund use.

?? Consider partial taxation for high-value holdings to balance inclusivity and revenue.

These bonds are shaping Kenya’s future while giving investors a chance to grow their money! ??#kenyainfrastructureinvest #investsmarter #taxfreebonds