Quick answer: Treasury bills (T-bills) are short-term loans to the Government of Kenya for 91, 182 or 364 days, sold at weekly auctions by the Central Bank of Kenya (CBK). You buy through the CBK DhowCSD app or website. Recent reporting puts the minimum at KSh 100,000 for T-bills (bonds from KSh 50,000). Retail investors usually place a non-competitive bid and accept the auction rate. If you have less, a money market fund invests in similar assets for you.
How T-Bills Work
T-bills are sold at a discount. You pay less than the face value now and receive the full face value at maturity; the difference is your return. The rate is set at each weekly auction, so check the latest results on the CBK website before you bid.
| T-bill | Term | Good for |
|---|---|---|
| 91-day | About 3 months | Short-term savings |
| 182-day | About 6 months | School fees, planned costs |
| 364-day | About 1 year | Longer goals; often the highest T-bill rate |
How to Open a DhowCSD Account
- Download the official DhowCSD app or open the CBK DhowCSD portal.
- Register with your ID, KRA PIN ({shn("kra-pin", "get a KRA PIN online")}), email, Kenyan phone number and bank account details.
- Complete registration within the time allowed and wait for approval.
- Log in and set up your settlement (bank) details.
How to Place a Bid
- Check the weekly auction notice (which tenors are on offer and the closing time).
- Choose the T-bill and enter the amount.
- Choose non-competitive (you accept the average rate) unless you understand competitive bidding.
- Submit before the deadline.
- If successful, pay by the settlement date shown, using the payment options in DhowCSD.
- At maturity the money returns to your account; you can choose to roll it over.
T-Bills vs Bonds vs Money Market Funds
| T-bills | Treasury bonds | Money market fund | |
|---|---|---|---|
| Term | 3–12 months | 2–25+ years | Open-ended |
| Minimum | About KSh 100,000 | About KSh 50,000 | Often a few thousand shillings |
| Access before maturity | Limited | Sell on the market (price can change) | Withdraw in days |
| Returns | Set at auction | Coupon every 6 months | Daily interest, varies |
See money market funds in Kenya for the small-amount route.
Risks and Tax
- Government securities are among the safest shilling investments, but your money is locked until maturity.
- Inflation can eat into returns.
- Tax treatment can change with Finance Acts; confirm the current withholding tax on CBK’s or KRA’s website.
- Never send money to anyone who offers to "buy T-bills for you"; use DhowCSD or a licensed bank or broker.
Example: Saving School Fees
A parent who will pay fees in six months places a non-competitive bid for a 182-day T-bill with money saved in a SACCO dividend and a bonus. At maturity, the face value arrives just before the fees are due.
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Frequently Asked Questions
What is the minimum for Treasury bills in Kenya?
Recent reporting puts it at KSh 100,000 for T-bills and KSh 50,000 for Treasury bonds; check the current auction notice.
How do I buy Treasury bills in Kenya?
Register on CBK’s DhowCSD app or portal, place a bid at the weekly auction, and pay by the settlement date.
What is a non-competitive bid?
A bid where you accept the average auction rate; it suits most retail investors.
Can I sell a T-bill before maturity?
Options are limited; plan to hold until maturity.
T-bills or money market fund?
T-bills lock money for a fixed term; MMFs accept small amounts and let you withdraw in days.
Where do I find current T-bill rates?
On the Central Bank of Kenya website, in the weekly auction results.
Cover photo: Kenyan shilling banknotes and coins. Photo: Kenyan shillings by wrcomms, CC BY-SA 2.0.
