However, the infrastructure bond will be redeemed partially in 2015, 2017 and 2021 as an attractive feature for medium term investors who may wish to recoup investment back before expiry of the life of the bond. It will also help Treasury at redemption given the huge amount involved. A number of incentives have been given to make the issue attractive and successful.
They include; exemption from withholding tax on interest income, we have revised agency commission upwards, the bond will qualify for statutory liquidity requirements; the bond will be listed for trading at the Nairobi Stock Exchange, the holders can use it as collateral to  BIS Review 27/2009  1  acquire loans from banks and banks can pledge it as collateral for repos.