How to Buy Treasury Bills in Kenya

Updated 18 October 2026

Treasury bills are short term government securities issued by the Central Bank of Kenya on behalf of the National Treasury. They are among the safest investments available in Kenya, because they are backed by the government. Many savers use them to earn a better return than an ordinary savings account on money they will not need for a few months. This guide explains how Treasury bills work, how to open an account and bid on CBK’s DhowCSD platform, what returns and tax to expect and common mistakes to avoid.

How Treasury Bills Work

A Treasury bill is sold at a discount to its face value. You pay less than the face value today and receive the full face value when the bill matures. The difference is your return. CBK offers three tenors:

CBK holds auctions every week, and the rates are set by the bids received. Rates change from week to week, depending on government borrowing needs and conditions in the money markets.

Minimum Investment

The minimum face value for a Treasury bill has been KSh 100,000. Because bills are sold at a discount, you pay slightly less than the face value when you buy. Check the current minimum on CBK’s auction notices before bidding.

What You Need

• A Kenyan ID or passport.
• A KRA PIN. See how to get a KRA PIN.
• A bank account in your name, where your returns and maturity proceeds will be paid.
• A smartphone or computer to use DhowCSD.

Step by Step: Buying Through DhowCSD

1. Open a DhowCSD account. Download the DhowCSD app or visit the web portal and register with your ID, KRA PIN and bank details. Your bank may need to verify the account.
2. Check the auction notice. CBK publishes notices showing the bills on offer, the closing date and payment deadlines.
3. Place a bid. Choose the tenor and amount. You can make a non competitive bid, which accepts the average rate from the auction, or a competitive bid, where you state the rate you want. First time investors usually choose non competitive bids.
4. Pay. After the auction, you receive a payment advice. Pay the discounted amount by the deadline using the method shown, such as a bank transfer or mobile money where offered.
5. Hold to maturity. At maturity, the face value is paid into your bank account. You can choose to roll over into a new bill.

Returns and Tax

Interest on Treasury bills is subject to withholding tax, which is deducted at source. The return you see in auction results is before tax, so your net return is a little lower. Compare the net return with alternatives such as money market funds and fixed deposits.

Treasury Bills Versus Other Options

Treasury bills suit people who have a lump sum and know they will not need it until maturity. If you might need the money suddenly, a money market fund is more flexible.

Worked Example

Suppose you place a non competitive bid for a 364 day bill with a face value of KSh 100,000. If the auction sets a discount that means you pay KSh 90,000 today, you receive KSh 100,000 when the bill matures a year later. Your gross gain is KSh 10,000. Withholding tax is then applied to that interest, so your net gain is a little less. The actual price depends on the rate at each auction, so treat these figures only as an illustration of how the discount works.

Building a Treasury Bill Ladder

Some investors split their money across the three tenors, or buy a new bill every few weeks, so that some money matures regularly. This is called a ladder. It gives you access to part of your money at different times while keeping most of it invested at government backed rates.

Common Mistakes

• Missing the payment deadline, which cancels the successful bid.
• Bidding a competitive rate that is too high, so the bid is rejected.
• Forgetting withholding tax when comparing returns.
• Investing money needed before maturity.

Frequently Asked Questions

Can I buy Treasury bills on my phone?

Yes, through the DhowCSD app.

Do I need a stockbroker?

No. You can buy directly from CBK through DhowCSD.

How often are auctions held?

Weekly.

Can I sell a Treasury bill before maturity?

Selling early is possible in the secondary market but not always easy. Plan to hold to maturity.

Are Treasury bills safe?

They are backed by the Government of Kenya and are considered very low risk.