Can Bonds Pay Your Rent? How Much Investment You Need to Earn Between Ksh15K & Ksh30K Per Month

In 2025, Treasury bonds in Kenya, which are periodically issued by the Central Bank of Kenya (CBK), gained popularity and attracted oversubscriptions from investors. For instance, in August, the state reopened two infrastructure bonds—IFB/2018/015 (15 years) and IFB1/2022/019 (19 years). While it was seeking to raise Ksh90 billion, it ended up accepting around Ksh95 billion out of the Ksh323.43 billion offered.

Days later, CBK conducted a tap sale on the same bonds and accepted an additional Ksh179.77 billion. This demonstrated investors’ strong appetite for long-term government bonds, likely due to their low risk and consistent income stream, which is payable every six months.

Using Bond Interest to Sort Out Monthly Rent

In Kenya, rent is a major component of household expenses, sometimes consuming up to 50% of a family’s income. This becomes particularly stressful if a breadwinner loses their job, exposing the household to the risk of eviction.

However, a smart way of securing your family’s shelter—without necessarily owning a home—is by investing strategically so that your monthly passive income covers rent. This way, even if something happens to your active income, you are still protected.

In this article, we break down how much you need to invest in government bonds to cover the monthly rent of Ksh15,000, Ksh20,000, and Ksh30,000. We will also show you how much you would earn if you invested Ksh100,000 in six of the most recent infrastructure bonds.

Disclaimer: For this article, we use infrastructure bonds to take advantage of their tax-free benefits.

What is an Infrastructure Bond? These are bonds issued by the government to finance specific infrastructural projects. Returns from infrastructure bonds are tax-exempt, making them especially attractive to investors.

How Much You Would Be Making With Ksh100,000 in Each Bond

Since 2018, the government has issued more than six infrastructure bonds with coupons paid out semi-annually. These include:

• IFB1/2021/016 – 12.26% interest, pays in January and July
• IFB1/2024/8.5 – 18.46% interest, pays in February and August
• IFB1/2023/017 – 14.40% interest, pays in March and September
• IFB1/2019/16 – 11.75% interest, pays in April and October
• IFB1/2018/20 – 11.95% interest, pays in May and November
• IFB1/2023/007 – 11.86% interest, pays in June and December

This means that if you invested Ksh100,000 in each of these six bonds, your monthly passive income would look like this:

• January: Ksh6,130
• February: Ksh9,230
• March: Ksh7,200
• April: Ksh5,875
• May: Ksh5,975
• June: Ksh7,920
• July: Ksh6,130
• August: Ksh9,230
• September: Ksh7,200
• October: Ksh5,875
• November: Ksh5,975
• December: Ksh7,920

This adds up to a total annual passive income of Ksh84,660, translating to an average return of 14.11%. At maturity of each bond, you will also receive your principal of Ksh100,000 in full.

How Much You Need to Invest to Earn Ksh15,000 Every Month

Assuming an average annual return of 14% across six infrastructure bonds, if you invest Ksh220,000 in each bond, your total investment would be Ksh1.32 million.

At this rate, each bond would generate about Ksh30,800 in annual interest, payable semi-annually at Ksh15,400. Altogether, the six bonds would pay approximately Ksh184,000 per year in interest.

That translates to a monthly income of around Ksh15,000, enough to comfortably cover rent in many parts of the country.

For context, in Nairobi, Ksh15,000 can get you a one-bedroom apartment in a lower middle-class estate, while in towns like Kakamega, it could afford you a two-bedroom unit.

How Much You Need to Invest to Earn Ksh20,000 Every Month

With six infrastructure bonds offering an average annual return of 14%, an investment of Ksh300,000 in each bond would bring your total investment to Ksh1.8 million.

At this rate, each bond would generate about Ksh42,000 in annual interest, payable semi-annually at Ksh21,000. Altogether, the six bonds would pay approximately Ksh252,000 per year in interest.

That works out to a monthly equivalent of about Ksh21,000, enough to cover rent worth Ksh20,000 comfortably.

For perspective, in Nairobi, Ksh20,000 can afford you a classy one-bedroom apartment in a middle-class estate or a two-bedroom unit in a lower-class estate. In towns like Kakamega, the same amount can get you a solid two-bedroom house.

How Much You Need to Invest to Earn Ksh30,000 Every Month

With six infrastructure bonds averaging an annual return of 14%, an investment of Ksh450,000 in each bond would bring your total investment to Ksh2.7 million.

At this rate, each bond would generate about Ksh63,000 in annual interest, payable semi-annually at Ksh31,500. Altogether, the six bonds would pay approximately Ksh378,000 per year in interest.

That translates to a monthly equivalent of about Ksh31,500, enough to comfortably cover rent worth Ksh30,000.

In Nairobi, Ksh30,000 can afford you a two- or three-bedroom apartment, depending on the estate. In towns like Kakamega, the same amount could get you a solid two- or three-bedroom house with its own compound.

Key Considerations When Investing in a Government Bond

Before investing in a long-term government bond, there are a few important things you should understand:

Amortisation: Some bonds are amortised, meaning that instead of repaying the principal in one lump sum at the end of the bond’s tenor, the government gradually pays it back over the life of the bond.

• For example, if a bond matures in 20 years but is amortised after 10, investors who put in less than Ksh1 million will get their entire principal back at year 10—ending their coupon earnings.
• Those who invest more than Ksh1 million will typically get half of their principal back at amortisation, which reduces their interest income going forward.

Maturity Date: You only enjoy the full run of a bond if you invest at its initial issue. For reopened bonds, you’ll only earn interest for the remaining life of the bond.

• Example: If a 20-year bond is reopened after 5 years, investors will earn interest for the remaining 15 years.

Settlement Date: After your bid is accepted at auction, you must transfer the funds by the settlement deadline. Failing to settle on time can lead to suspension from participating in future government securities.

Payment Key: Once your bid goes through, you must wait for a payment key and confirmation of the exact amount payable before sending money. These details are available in your CSD account shortly after the auction.

Example: If you bid Ksh50,000, CBK will generate a payment key and confirm the exact amount due. Because Treasury Bonds are priced through an auction, your payable amount depends on the final price determined at auction. That’s why you cannot pay in advance—you must first wait for CBK to confirm the figure.