Investment Planner
What it does
The Investment Planner simulates the growth of a lump-sum bond investment over time. Given a face value, coupon rate, and investment horizon, it projects your total coupon receipts, the value of reinvested coupons (compounded at a chosen reinvestment rate), and the total return at maturity.
Unlike the calculator — which prices a single trade — the planner answers the question: "If I invest KES X in this bond today and hold to maturity, what do I end up with?"
When to use it
- Comparing the long-run return of two bonds with different coupons and maturities.
- Estimating total wealth accumulation from a bond investment over 5–10 years.
- Understanding how much of the return comes from coupon income vs. capital (face value).
- Modelling the impact of reinvesting coupons at different rates.
Real-life scenario
KES 1M in FXD1/2030/10 — total return over 5 years
You invest KES 1,000,000 face value in FXD2/2030/10 (coupon 13.49%, matures Jun 2030) on 5 May 2026 and plan to hold to maturity — roughly 4.1 years. You assume reinvested coupons earn 13% per year (broadly current money-market rates).
Example output
| Item | Amount (KES) |
|---|---|
| Face Value at maturity | 1,000,000 |
| Total gross coupon receipts | 553,909 |
| WHT deducted (15%) | −83,086 |
| Net coupon receipts | 470,823 |
| Reinvestment income (at 13%) | +62,140 |
| Total proceeds at maturity | 1,532,963 |
| Net return on investment | 53.3% |
| Annualised return (CAGR) | 11.0% p.a. |
Column reference
| Column | Description |
|---|---|
| Total gross coupon receipts | Sum of all semi-annual coupon payments over the holding period (before WHT). |
| WHT deducted | 15% withholding tax on FXD coupon income. IFB bonds are exempt. |
| Reinvestment income | Additional income from reinvesting each coupon at the chosen reinvestment rate. |
| Total proceeds at maturity | Face value + net coupon receipts + reinvestment income. |
| CAGR | Compound Annual Growth Rate — the annualised equivalent return on your initial outlay. |
Limitations
- Assumes you hold to maturity. Selling early changes the return significantly depending on where yields move.
- Reinvestment rate is a manual assumption — actual rates you can reinvest at will vary over time.
- Does not model transaction costs or inflation-adjusted returns.