How to Buy Treasury Bills and Bonds in Kenya (via DhowCSD) — 2026
Lending money to the government is one of the safest ways to earn interest in Kenya — and since the Central Bank opened its DhowCSD portal you can do it yourself from your phone, with no broker in the middle. This guide explains what Treasury bills and bonds are, what they pay, how they are taxed (the part that changes the answer), and exactly how to buy them.
Treasury bills vs bonds — the difference
- Treasury bills (T-bills) are short-term. The Central Bank of Kenya (CBK) auctions them every week in three tenors: 91 days, 182 days and 364 days. You buy at a discount and are paid the full face value at maturity — the difference is your interest.
- Treasury bonds (T-bonds) are longer-term, from 1 to 30 years. They usually pay a coupon twice a year and return your capital at maturity. You can sell before maturity on the secondary market, at whatever price the market gives you that day.
Both are backed by the government, which is why they are treated as the lowest-credit-risk shilling investment available to ordinary Kenyans.
What they pay right now
Yields move with every auction, so always work from the latest CBK auction results. For orientation only: on issues dated late August 2026 the 91-day bill was around 8.77%, the 182-day around 8.94% and the 364-day around 9.03%, with the Central Bank Rate held at 8.75% at the August 2026 MPC meeting.
Note how flat that curve is — barely a quarter of a point between three months and a year. When the curve is flat there is little reward for locking money up longer, which is a genuine argument for staying short and keeping flexibility. When it steepens, the calculation changes. Check the shape, not just the headline rate.
What you need to start
- A CSD account with the CBK. This holds your securities. You open it — free — through DhowCSD at dhowcsd.centralbank.go.ke or the DhowCSD mobile app. No intermediary needed.
- The minimum. For an ordinary (non-competitive) bid, the minimum face value is KSh 50,000, in multiples of KSh 50,000. Very large investors can place competitive bids from KSh 2,000,000, but most people use the non-competitive route and simply accept the auction's average rate.
That KSh 50,000 minimum is the real gate. If you have less, a money market fund is the accessible alternative, and you can move to T-bills once you have built the amount.
How to buy, step by step
- Register for a CSD account on DhowCSD, linking your bank account and verifying your identity.
- Open the Auctions menu — the T-bills or bonds currently on offer are listed with their tenor and auction date.
- Place a bid for the amount you want, in KSh 50,000 multiples. For a non-competitive bid you accept the market's average rate, so you do not have to guess a yield.
- Confirm and submit.
- Pay by the settlement deadline. For T-bills payment is due by 2pm on the settlement date — the Monday after the auction, or the next business day if that is a holiday. Miss the deadline and your successful bid lapses.
- The security lands in your CSD account, and the proceeds return to your linked bank account at maturity.
Confirm the current minimums, tenors, auction calendar and steps on centralbank.go.ke or DhowCSD before bidding — the mechanics are occasionally revised.
The tax rules that change the answer
Interest is subject to withholding tax, deducted at source, and the rate depends on what you buy:
| Security | Withholding tax on interest |
|---|---|
| Treasury bills | 15% |
| Treasury bonds, tenor up to 9 years | 15% |
| Treasury bonds, tenor 10 years or more | 10% |
| Infrastructure bonds (tenor 3 years+) | Exempt |
The infrastructure-bond exemption is the single most important line in this guide. A tax-free 10% is worth the same as a taxable 11.8% at the 15% rate — so an infrastructure bond can beat a nominally higher-yielding ordinary bond outright. That is exactly why Kenyan investors oversubscribe them, and why you should compare after-tax yields rather than headline coupons.
Tax treatment of government paper has been the subject of repeated Finance Bill proposals, so confirm the current position with KRA or the CBK before committing a large sum.
Use our compound interest calculator to see how reinvesting the interest builds up over several tenors.
Who they're for (and what to weigh)
- T-bills suit money you want safe and near-term — an emergency buffer beyond your bank float, or savings you will need within a year. They are often compared directly with money market funds: a T-bill can pay more and is direct government risk, but an MMF gives you access in days and accepts small amounts.
- T-bonds suit longer goals — you lock a rate for years and collect regular coupons, accepting that selling early means taking the market price on the day.
The main trade-offs: your money is committed for the tenor (a T-bill cannot be broken the way an MMF can be exited), and while credit risk is minimal, inflation erodes a fixed return over a long bond, and interest-rate moves change the resale value of a bond you sell early.
Building a ladder
If you want both yield and access, split the money across tenors so something matures every few months — 91, 182 and 364 days running in parallel. You keep rolling what you do not need and are never forced to sell a bond at a bad price to raise cash. It costs nothing to set up and is the single most useful thing a Kenyan saver can do with a lump sum.
Frequently asked questions
Do I need a broker? No. DhowCSD lets individuals buy directly from the CBK — that is the point of the platform. Banks and investment firms will still do it for you, for a fee.
What is the minimum investment? KSh 50,000 face value for a non-competitive bid, in multiples of KSh 50,000. Competitive bids start at KSh 2,000,000.
How are Treasury bills and bonds taxed in Kenya? 15% withholding tax on T-bills and on bonds with a tenor up to 9 years; 10% on bonds of 10 years or more; infrastructure bonds with a tenor of three years or more are exempt. Compare after-tax yields.
T-bills or a money market fund? Different tools. A T-bill can offer a higher fixed return but locks your money for the tenor and needs KSh 50,000; an MMF gives access in days at a variable yield with a low minimum. Many people use both — see our MMF vs SACCO vs bank comparison.
What happens at maturity? The face value is paid into your linked account. You can also choose to roll over into a new issue when you bid.
Is my money safe? Government securities carry the lowest credit risk of any shilling investment. That is not the same as risk-free — you still face inflation, and bonds sold before maturity are exposed to price movements.
