Calculate the purchase price, discount earned, maturity date, and effective annualised yield of a Kenyan Treasury Bill, using CBK's bank-discount pricing method.
A Treasury Bill is sold below its face value and repaid in full at maturity — the difference is your return, not a coupon payment — which trips up first-time investors trying to work out what a quoted rate actually means in shillings. The Treasury Bill Calculator converts a face value, tenor, and quoted rate into the price you'll actually pay and what you'll earn.
How Is a Treasury Bill Priced?
This calculator uses the bank-discount method, CBK's primary-auction pricing convention: the discount is your face value multiplied by the quoted rate and the tenor as a fraction of a 365-day year, and the purchase price is face value minus that discount. A KES 100,000 T-Bill at a 15% rate for 91 days, for example, has a discount of roughly KES 3,747 — so you'd pay about KES 96,253 to receive KES 100,000 at maturity.
Why Does the Calculator Show Two Different Yield Figures?
The quoted rate is applied to the face value, but your actual money is the smaller purchase price — so the calculator also shows an effective annualised yield, calculated on the amount you actually invested rather than face value. This effective yield is always slightly higher than the quoted rate, since the same shilling discount represents a larger percentage return on a smaller invested amount.
What Tenors Are Available?
Kenyan T-Bills are auctioned at three fixed tenors — 91, 182, and 364 days — selectable from the term dropdown. Enter your value date (the settlement date) and the calculator adds the tenor to show your maturity date automatically.
Is There Withholding Tax on T-Bills?
This calculator does not model withholding tax on T-Bill discount income, matching the absence of a WHT field on the source calculator this tool is based on. Confirm the current WHT treatment for T-Bills with your bank or CBK before treating the effective yield shown here as your final after-tax return.
Using This Before You Bid
Run the face value and tenor you're planning to invest through this calculator at a few different rate scenarios to see how sensitive your purchase price is to the rate CBK actually clears the auction at, since your bid rate and the final weighted-average rate can differ. This is a pricing estimate for planning purposes only — confirm final figures against CBK's official auction results before committing funds.
How is a Treasury Bill priced in Kenya?
Using the bank-discount method: the discount equals face value × rate ÷ 100 × (days ÷ 365), and the purchase price is face value minus that discount. A T-Bill is repaid at full face value on maturity.
What tenors are available for Kenya Treasury Bills?
Kenyan Treasury Bills are auctioned at three fixed tenors: 91 days, 182 days, and 364 days.