How T-bills pay you

T-bills are sold at a discount. You choose the amount you want back at the end (the face value), and you pay less than that today. The difference is your interest.

For example, at around 9% a year, a 364-day bill worth KES 100,000 at maturity costs roughly KES 91,700 today.

• Interest is taxed at 15% withholding tax.
• Rates are set at the weekly auction, so they change every week.
• At maturity you can take the money or roll it into a new bill.