Simple Interest Calculator Kenya — See Your Exact Return
Enter your principal, annual interest rate, and time period to calculate your return on fixed deposits, Treasury Bills, savings accounts, and other simple-interest products in Kenya.
100,000 at 9.4% for 2 years earns 18,800 in simple interest. Your total would be 118,800.
Simple Interest Formula — How It Works
Example: You invest KES 100,000 in a Kenyan fixed deposit at 12% per annum for 2 years. Your simple interest is 100,000 × 0.12 × 2 = KES 24,000. After 15% withholding tax (KES 3,600), your net interest is KES 20,400 and your total value is KES 120,400.
Unlike compound interest, simple interest does not reinvest earnings. This makes it easier to predict but produces lower returns over long periods. Most Kenyan fixed deposits and Treasury Bills use simple interest.
Where to Earn Simple Interest in Kenya — 2026 Rates
Compare the products that use simple interest. Rates updated daily on Serrari.
| Product | Typical Rate | Min. Investment | Tax on Interest | Tenure |
|---|---|---|---|---|
| Treasury Bills | 9 – 12% | KES 100,000 | 15% WHT | 91 – 364 days |
| Fixed Deposits (KES) | 8 – 13% | KES 1,000+ | 15% WHT | 1 – 12 months |
| Treasury Bonds | 12 – 16% YTM | KES 50,000 | 15% WHT (≤ 10 yrs) / 10% (> 10 yrs) | 2 – 25 years |
| Savings Accounts | 6 – 14% | KES 0 | 15% WHT | Instant access |
| Fixed Deposits (USD) | 3 – 5.5% | USD 1,000+ | 15% WHT | 3 – 12 months |
Simple Interest vs Compound Interest — Kenya Comparison
Understanding the difference helps you choose the right product for your goals.
| Factor | Simple Interest | Compound Interest |
|---|---|---|
| Formula | P × R × T | P(1 + r/n)ⁿᵗ |
| Interest earned on | Original principal only | Principal + accumulated interest |
| KES 100K at 10% for 5 years | KES 50,000 interest | KES 61,051 interest |
| Kenya products | FDs, T-Bills, Bonds | MMFs, Unit Trusts, SACCOs |
| Best for | Short-term, predictable returns | Long-term wealth building |
Want to see compound interest in action? Try the Compound Interest Calculator
Simple Interest Calculator — FAQ
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