Still very good returns,especially the T-bills at 19% returns and you get to enjoy the interest now!

I thought the interest is paid at maturity i.e after 91 days for the 91 day T-Bill?

I also used to hold this misconception. But now I know better...

Suppose the interest rate is 19%; so you pay Sh96,119.20 [inc w-h-tax] and wait 91 days when you get sh100,000 back.

Does that really mean that you get the interest upfront? Of course not!

@kyt
There is two part to bond/price/interest, the first part would be the zero coupon and that works like the way mukiha explained.

There is a coupon paying bonds, so I guess that is what your were trying to explain, the fact of the matter with coupon paying bonds is that as much as you're getting a constant coupon payment the value of your total bond investments is inversely proportional to market rates meaning that high market rates are not good!

What are the current rates?

Guys:

Please warn the absent minded among us when it's an old post! Almost ran to rob a bank to buy T-bills when I saw the 19% return rate from 2012...

Thanks pesa nane for the update.

for bonds you are better off in a bond fund. If you have an emergency it can be a nightmare selling those bonds when interest rates change. Stock brokers trade bonds and if they can't get a buyer they send you to CBK for redemption.

T-bills you can manage if you have the time to keep doing roll-over when the t-bill matures. Good for retirees but if you are busy it's easier to just buy a money market fund let them do the dirty work and credit your interest

9.999/12=0.83325 per month minus 15% Tax.

so why not just invest in faulu?

Default risk...