Treasury Bills Kenya
Treasury bonds and treasury bills are a way for governments to raise money from the members of the public. Your investment may yield some outcome after a long time of waiting.

The Best Guide On How To Invest In Treasury Bills Kenya; Make High Profits

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You must have heard about treasury bills Kenya and bonds somewhere, and how you can make money from them, right? Definitely, you have heard that, and may be you just want to get a better picture of what this stuff is. Or maybe it is your first time here, no problem. Especially if you are in Kenya you will learn about the treasury bills in Kenya and how to build an income out of it.

Let’s first think about this. If you ever save a penny, you will still get back that penny at withdrawal. However, if you happen to invest that penny, you can be guaranteed to make a profit out of it. does that make sense? 

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Let’s get started discussing this online job in Kenya i.e treasury bills Kenya. Now let’s talk about treasury bills and treasury bonds in Kenya, specifically, how do you invest in them? What are they? What’s the procedure for investing? What is the difference between treasury bills and bonds Kenya? What are some of the advantages that they will offer you as an investor.

What are treasury bills kenya?

So one thing I always say is that most of us don’t make a lot of money in our youth. Because we are afraid of risks, we don’t want to take risks. And some people fear the stock market for genuine reasons though not enough to pull you off the hook.

I believe that in Kenya, treasury bills and treasury bonds are alternative investments. So of course, they are everywhere else. But I want to focus on treasury bills Kenya today, because I will talk about the process of buying them, and why we should invest in them.

And by the way, banks steal money from us guys, banks, always, always make us poor.So why do I say so? I say so because we keep a lot of money in the bank, they have very low-interest rates on loans, but we don’t get anything back from what we give them. You’re basically giving them your money to make money, but you’re not making any money out of it.

So you work hard, you put your money in the bank, they use your money to make money, but you don’t get anything out of it. Sometimes they actually deduct some of the money. So a lot of us have been brought up to get used to the idea of saving money in the bank, which I think is an outdated idea. It’s an idea that has kept us poor economically, an idea that we need to throw on the wayside and start proper investing.

Now, I know some people, as I said, fear taking risks. Treasury bills and treasury bonds are kinda for those who are risk-averse. So if you do not want to take any crazy risks, if you believe the stock market is not for you, if you believe that maybe real estate is not for you, if you believe that business is not for you, and you just want to work, make your money and spend it. Then check out these online business options and online jobs.

And of course, you and business people can still invest, this is the place to be. And I’m not saying it’s strictly, only for those people who are risk-averse. Again, there are people who want to diversify their investments. It is a very good thing to diversify investments.

Tet’s talk about treasury bills and treasury bonds. And I’m going to start by talking about treasury bills. So essentially, Treasury bills are investment vehicles that are offered by the Government of Kenya through the central bank, or, through other brokers that are appointed by the central bank. They are short-term investment vehicles.

In this, you loan your money to the government, and then you get back with some interest. What you do is you buy coupons, and these coupons have in value, there’s a face value on the coupon. But when you buy the coupon, you’re buying it at a discount. So when you buy the coupon at a discount, it means you’re not investing the exact amount or the exact value of that T-bill.

So your investment is lower than the face value of the coupon. It is the discount you get at purchase that you will earn at maturity as profit or interest to your investment, I say short term because they’re within three months, six months, or a year. At maturity of either period, if you will have invested your money, you will receive your cash plus interest amount of money back much better than the banks.

Example: If you apply for a 182days T-bill of KShs 200,000 and your acceptance rate is 8.06, you will pay approximately KShs 193,150 with your interest/discount being KShs 6,850

Calculated as follows (182/364)*0.0806*200,000) * 0.85

We multiply with 0.85 to factor for 15% Withholding tax on interest.

We divide the rate by half because 8.06% is an annual rate and you are buying it only for 182 days (half-year).

So, you will pay KShs 193,150 on purchase then receive KShs 200,000 after 182 days.

Advantages of treasury bills kenya

So what are some of the advantages of treasury bills Kenya? Let us look at a few.

They are very secure:- So for those who are risk-averse, like I said earlier, this is a good investment opportunity, you don’t have to worry about losing your money because the face value of the coupon you bought is the money you will get at the end of the period at the maturity time. So you don’t have to worry about the risks, you don’t have to worry about losing your investment. It’s very secure and very safe.

They offer short-term investment vehicles:- So if you do not want to get involved in making an investment that takes a long time to mature then you have this opportunity to invest in treasury bills Kenya and have your cash grow within a short time. You can choose three months, six months, or a year. 

They are auctioned weekly:- this makes it a timely investment. It means even next week, if you decide to invest in treasury bills, you can do it. You just need to check on what are the days to invest. Just visit the website of the Central Bank of Kenya to check what are the auction dates and decide when you want to start Investing.

They are flexible:- You decide the amount you want to invest, the profits can be calculated before you make the investments so you can decide wether to increase or reduce. You also can withdraw your funds anytime.

Good rates of return:- they have very attractive rates compared to banks and saving accounts. So it basically saves you money and make you more money. However, it is good to note that those that invest in more money or for longer periods of time will make higher interests.


  • They are illiquid. T-bills currently do not have a secondary market and hence you will have to hold them to maturity. Though the rediscounting option is available, it is very punitive.
  • They are short-term investments hence do not have high rates compared to the long-term investments.
  • They require a minimum investment of KShs 100,000 as of the face value and in denominations of KShs 50,000 thereafter.

Treasury bonds

So treasury bonds are basically investment medium to long-term investment vehicles, whereby you give the government money, and they pay you back the money with interest. It is more like a savings account. But in this, you’re dealing with the government. And still, it has better rates than the ordinary savings account.

Now, this is a very good investment vehicle, it is good to note that they’re offered every single month. So on a monthly basis, you’re able to get access to bonds to invest in. Again, you just need to go to the website of the Central Bank of Kenya, check when they have their next auction for bonds. And then get set to invest for a longer-term even up to 30 years or more.

There are also other bonds that the central bank or the government may offer across a period of time. And these are different bonds, like infrastructural bonds, that the government uses the money to develop infrastructure, and they give back the money to the individual with interest.

You can invest in these treasury bonds through the commercial bank. You also can just create a direct account with the syndicate and invest directly, you don’t need to have any link to invest in Treasury bonds.

The most interesting part is that both corporates and individuals can invest in bonds.

If you want to invest in treasury bonds, it’s a very simple process. Now, before we go into the process, because the process is almost similar for Treasury bills, let’s look at some of the advantages of treasury bonds.

Advantages of treasury bonds

They’re very secure:- This is a very secure investment when you buy you have a fixed interest rate, you know that at the end of this maturity period, this is the interest rate that I’m going to have it is the amount of money I’m gonna have based on your investment. So that is security and safety in it.

 It gives you a regular income:- So because interest rates can be paid in six months period, as in every six months, you get your payment, your interest payments, that gives you a regular income. So if you’re someone who wants to get money regularly, this is a good investment vehicle for you.

They are very flexible:- it means you can invest every month, there’s no specific month when you have to invest in bonds. So if you feel you want to invest next month, simply check it out, check out the auction dates and go and invest.

They also give you flexibility in terms of the kinds of bonds you can invest in, like I said that there are different ranges of bonds within treasury bonds. So it gives you the option of deciding where you want to invest your money. You can choose from infrastructure bonds, zero coupon bonds, and any other bond type within the Treasury. Of course, you need to do that research and make sure you know what you want to invest in specifically.

How to invest in treasury bills and treasury bonds

So both the treasury bonds, and the Treasury bills have almost similar investment procedures.

1. Open a CDs account, 

You open a CDS account for free with the Central Bank in any of its branches in Nairobi, Mombasa, Kisumu, Eldoret, or the Currency Centres in Meru, Nakuru, Nyeri, and Kisii. You will need to fill in the mandate card and provide among other information on the card your bank details. You must have two signatories of your bank certify the information by signing the form. You can go to any branch of your bank for confirmation, not necessarily your branch.

You can complete the application process in one day but it can be long if you do not have all the required documentation with you. Please see the link for what you require

Normally your CDS account will be processed within 7 days (There have been some delays recently due to the effect of the COVID-19 pandemic limiting the number of staff going to the office)

Once your CDS account is ready, you will receive a text message/email from CBK notifying you and also providing you with your account number (Both portfolio and virtual account numbers).

If you do not wish to open a CDS account with the Central Bank, you can still invest through your commercial bank but in most cases at a fee.

Kenyans living abroad can invest in government securities as long as they have an active Kenyan bank account. They can open a CDS account and submit all required forms to the Central Bank via email. 

2. Submit an application to bid

The minimum amount of Face Value is KShs. 100,000 and anything above must be in denominations of KShs 50,000. So after 100K, the next figure is 150K, 200K, and so on.

Face Value is the actual value of the Treasury bill. The amount you will get back after the days you invested has passed.

Recently CBK has introduced Treasury Mobile Direct (TMD) where you can place your orders through your mobile phone (previously you were required to submit physical bids to CBK).

There are 2 ways to invest; competitive and non-competitive bids.

In the competitive bidding, you indicate the rate you expect CBK to pay you for the money you are lending (Mandatory for bids above 20M).

In non-competitive bidding, you accept the average rate of the accepted bids. Every Thursday CBK reviews bids from investors, based on their appetite they accept bids that are within the interest rate they are willing to give and reject those with higher rates than they are willing to give. Once the auction is complete, you will receive an SMS or email from CBK notifying you of the results of your bid, typically by the next day

3. make the payment

If your bid is successful, the SMS/email from CBK will indicate the amount you need to pay, the reference number, and by when you should pay; usually by the next Monday (unless it is a public holiday). It’s therefore important to ensure you have the money in your account before deciding to apply for the bill.

CBK accepts bankers’ cheques for amounts below KShs. 1 million. For amounts above 1millon, you will be required to do a bank transfer. Thanks to online banking you can now do online transfers to CBK. Successful applicants who fail to submit payments within the payment period may be barred from future investment in government securities.

4. Wait for the maturity date.

At the end of the investment period, the face value amount of the T-bill you bought will be credited to your bank account. You may however choose to give roll-over instructions to CBK to purchase another bill with your proceeds.

In very dire situations where an investor needs her money back before maturity, the T-bill can be rediscounted by CBK. That is, they can buy the T-bill from the investor at a discount. They do so as the last resort and at very punitive rates to encourage investors to hold the securities to maturity.

In the unfortunate event that the investor passes away before the maturity of his/her investments, bonafide next of kin can claim the securities.

just go into the CBK website and do it. If you want to do it through an investment bank, then do it. If not do it through the commercial bank of Kenya. So it’s a very simple and seamless process. 

Disclosure: Some information in this article was sourced from LinkedIn.

Our final thoughts

Treasury bills and treasury bonds are good sources of income. In fact, you can choose to buy treasury bills monthly for six months and set a maturity period of 1 year. Since you earn from each T-bill twice in a year, you will have created a stream of monthly income that is passive. This is a good method to make your money work for you while you are asleep.

Do you have any questions? Do you think I left something out? Have you ever invested in any of the above-mentioned opportunities? Let’s get the comment section jammed with your views.

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