Government waives witholding tax for Sh20 billion bond

The ongoing Sh20 billion infrastructure bond issue could be oversubscribed after the government exempted its returns from withholding tax. The 12-year issue that closes next Tuesday attracts a tax-free, fixed annual coupon of 11 per cent. The returns will be paid after every six months between March 2014 and September 2025, according to the Central Bank. Proceeds from the issue will partially cover the Sh36 billion budget required for undisclosed infrastructural projects in water, sewerage,irrigation,transport and energy. Targeted projects in water, sewerage and irrigation are estimated to...