How to Buy Treasury Bills in Kenya 2026: Complete Step-by-Step Guide
Treasury Bills (T-bills) are one of the safest investments in Kenya - backed by the government with guaranteed returns. Here's how to buy them directly from the Central Bank of Kenya.
Current T-Bill Rates (January 2026)
| Tenure | Issue Number | Interest Rate | Risk |
| 91-Day | 2665/091 | 7.73% | Zero |
| 182-Day | 2639/182 | 7.80% | Zero |
| 364-Day | 2594/364 | 9.20% | Zero |
Rates as of January 15, 2026 auction
What Are Treasury Bills?
Treasury Bills are short-term government debt securities. When you buy a T-bill:
- You're lending money to the Kenyan government
- The government pays you back with interest at maturity
- Returns are guaranteed - zero default risk
- Interest is exempt from withholding tax for individuals
Investment Requirements
- Minimum Investment: KES 100,000
- Additional Amounts: Multiples of KES 50,000
- Maximum per Issue: KES 20,000,000
- Auction Schedule: Weekly (91-day and 182-day)
Step-by-Step: How to Buy T-Bills via CBK Dhow Portal
Step 1: Open a CDS Account
You need a Central Depository System (CDS) account with CBK.
Requirements:
- National ID
- KRA PIN
- Bank account with any Kenyan commercial bank
How to open:
- Download CDS Account Opening Form from CBK website
- Fill in all required details
- Submit at any CBK branch OR email to ndo@centralbank.go.ke
- Wait 2-3 business days for activation
Step 2: Register on Dhow CSD Portal
- Visit CBK Dhow Portal
- Click "Register"
- Enter your CDS account number
- Create username and password
- Verify via email/SMS
Step 3: Fund Your Account
Transfer money to your CDS account via:
- RTGS (same-day for large amounts)
- EFT (1-2 days)
- Mobile banking
Step 4: Place Your Bid
Two types of bids:
Non-Competitive Bid (Recommended for beginners)
- You accept whatever rate the auction determines
- Guaranteed to be filled
- Best for first-time investors
Competitive Bid
- You specify the rate you want
- May not be filled if rate is too high
- For experienced investors
Step 5: Receive Confirmation
After the auction:
- CBK emails your allotment details
- Funds are debited from your CDS account
- T-bill is credited to your account
Step 6: Receive Payment at Maturity
On maturity date:
- Principal + interest credited to your CDS account
- No action required from you
- Can reinvest or withdraw to bank
Alternative: Buy Through Your Bank
Don't want to open a CDS account? Your bank can buy T-bills on your behalf:
| Bank | Minimum | Fee |
| Equity Bank | KES 100,000 | 0.5% |
| KCB | KES 100,000 | Varies |
| Co-op Bank | KES 100,000 | Varies |
Banks charge fees, direct CBK purchase is free
T-Bills vs Money Market Funds
| Factor | T-Bills | MMFs |
| Returns | 7.7-9.2% | 9-11% |
| Minimum | KES 100,000 | KES 100 |
| Liquidity | At maturity only | 1-3 days |
| Tax | Exempt | 15% withholding |
| Risk | Zero | Very Low |
Verdict: MMFs offer higher returns and better liquidity. T-bills are better for large amounts where you want government guarantee and tax benefits.
Tax Treatment
- Individuals: Interest income is exempt from withholding tax
- Companies: Subject to corporate tax
- This makes effective return higher than stated rate
Auction Calendar
T-bill auctions happen every Wednesday:
- Announcement: Thursday before
- Bidding closes: Tuesday 2pm
- Results: Wednesday
- Settlement: Thursday
Tips for First-Time Investors
- Start with non-competitive bids - Guaranteed allotment
- Try 91-day first - Shortest commitment
- Use CBK directly - Avoid bank fees
- Set calendar reminders - For auction dates and maturities
Contact CBK
Financial Markets Department
- Phone: 020 286 0000 (ext. 3640/3641)
- Email: ndo@centralbank.go.ke
- Website: centralbank.go.ke
Looking for higher returns with lower minimums? Compare Money Market Funds