Medium term to long-term government bonds offered investors the highest returns this year out of the main asset classes in a period the economy started recovering from the ravages of Covid-19.
The debt securities auctioned this year had fixed interest rates of between 9.49 percent and 13.44 percent, giving investors guaranteed income over their holding period.
Government bonds became a shelter for many investors starting last year when the outbreak of the pandemic sent share prices diving and broke the rally in the value of real estate that had been going on for more than 15 years.
The 20-year bond auctioned in August came with the highest interest rate of 13.44 percent while the two-year paper sold in January bore the lowest interest rate of 9.49 percent.
An investor who put in Sh1 million in the longer-dated paper will earn interest income of Sh134,400 annually before taxes while the same amount allocated to the short-term paper will bring in Sh94,900 per annum before taxes.
Listed equities offered investors the second-best returns, posting gains of 11.91 percent as of Wednesday based on the movement in total market capitalisation.