Kenyans buying Ugandan and Tanzanian T-bills
Rules checked October 2026 · 7 min read
Kenyan T-bills are easy to buy on DhowCSD. But our neighbours sell Treasury bills too, and both Uganda and Tanzania let Kenyans buy them. Tanzania opened its market to every foreign investor in July 2026. Uganda has allowed foreign buyers for years.
This guide covers who can buy, the minimums, how to open an account, the tax, and the part most people miss: currency risk. A higher rate in another currency can still leave you with fewer Kenya shillings.
At a glance
| Uganda | Tanzania | |
|---|---|---|
| Can Kenyans buy? | Yes, foreign investors are allowed | Yes, any non-resident since 17 July 2026 |
| How | A securities (CSD) account at the Bank of Uganda, opened through a commercial bank | A securities account at the Bank of Tanzania, opened through an approved broker or bank (a "CDP") |
| Minimum | UGX 100,000 (non-competitive bid) | TZS 500,000 face value, in steps of TZS 10,000 |
| You'll need | A Ugandan tax number (TIN) from URA, and a bank account for payments | An account with a CDP, and a bank account for payments |
| Tax taken in that country | 20% withholding tax on interest (10% on bonds of 10 years or more) | Withholding tax on interest: confirm the rate with your CDP |
| This week's rates | Bank of Uganda | Bank of Tanzania |
How to buy Ugandan T-bills
- Get a Ugandan tax number (TIN) from the Uganda Revenue Authority. Foreigners can apply.
- Open a securities (CSD) account with the Bank of Uganda through a commercial bank that takes part in the auctions. The bank handles the forms.
- Set up a settlement bank account. Interest and your money at maturity are paid here.
- Bid before the auction. Your bank submits your bid a few days ahead. A non-competitive bid accepts the average rate, from UGX 100,000.
- Pay on time through the settlement bank if your bid succeeds.
Ugandan T-bill auctions currently run about every four weeks. The Bank of Uganda publishes each invitation to tender and the results on its website.
How to buy Tanzanian T-bills
- Choose an approved Central Depository Participant (CDP). This is a broker or bank licensed to deal in Tanzanian government securities.
- Open a securities account in the Bank of Tanzania's Central Depository System through that CDP.
- Bid through the CDP before the auction. The minimum is TZS 500,000 face value.
- Get the terms in writing: fees, how you'll pay in, and how money is sent back to Kenya at maturity.
The July 2026 change removed the old rule that only East African, SADC and diaspora investors could buy. Some older rules limited how much of each issue foreigners can hold, so ask your CDP whether any cap still applies.
The big one: currency risk
Your T-bill pays in Ugandan or Tanzanian shillings. When you change the money back, what matters is the rate after tax and what the currency did against the Kenya shilling. Roughly:
Return in Kenya shillings ≈ (1 + rate after tax) × (1 + change in that currency against the KSh) − 1
An illustration, not a forecast. Say a foreign bill pays 10% a year after tax:
| If that currency, over the year… | Your return in KSh |
|---|---|
| Holds steady against the KSh | About 10% |
| Falls 5% against the KSh | About 4.5% |
| Falls 10% against the KSh | About −1% |
| Rises 5% against the KSh | About 15.5% |
Compare that with a Kenyan 364-day T-bill, paying 7.58% after tax this week (auction dated 19 Oct 2026) with no currency risk at all. A foreign bill has to pay clearly more to be worth the extra risk and effort. Work out the Kenyan side in the T-bill calculator.
Costs that eat into the return
- Currency exchange, twice: once going in and once coming back. Bank exchange spreads can take 1% to 3% each way.
- Transfer fees for sending money across the border.
- Broker or bank fees for the securities account or each bid.
On a small amount held for three months, these costs can wipe out the extra interest. Foreign T-bills make more sense for larger amounts held longer, or for money you already hold in that currency.
What about tax in Kenya?
Uganda takes its withholding tax before you're paid, and Tanzania applies its own. On the Kenyan side, KRA's guidance says Kenya taxes income earned in Kenya, with exceptions mainly for foreign employment and business income. Interest earned abroad isn't listed among them, but rules change and your situation may differ. Check with KRA or a tax adviser before you invest, and keep records of the tax already paid.
Is it worth it?
It can be, if three things are true: the foreign rate after tax is well above Kenya's, you're comfortable with the currency moving, and the amount is big enough that fees don't swallow the gain. If you mainly want a higher rate with easy access, a Kenyan money market fund or a T-bill ladder at home is simpler.
Frequently asked questions
Can a Kenyan buy Tanzanian T-bills?
Yes. Since 17 July 2026, Tanzania lets any non-resident buy its Treasury bills and bonds through an approved Central Depository Participant. The minimum is TZS 500,000 face value.
Can a Kenyan buy Ugandan T-bills?
Yes. Foreign investors can open a securities account with the Bank of Uganda through a commercial bank. You'll need a Ugandan tax number (TIN). The minimum non-competitive bid is UGX 100,000.
Do I pay tax on Ugandan T-bill interest?
Uganda deducts withholding tax: 20% on government securities of under ten years, 10% on ten years or more. Confirm the current rate with your bank, and check the Kenyan side with KRA.
Are foreign T-bills better than Kenyan ones?
Only if the rate after tax beats Kenya's by enough to cover currency risk and fees. If the other currency falls against the Kenya shilling, a higher rate can still give you a lower return in shillings.
Can I buy them on DhowCSD?
No. DhowCSD is only for Kenyan government securities. Ugandan and Tanzanian bills are bought through those countries' own systems, via a local bank or broker.
For education only, not financial advice. Rules for foreign investors, minimums and tax rates can change: check with the Bank of Uganda, the Bank of Tanzania, your bank or broker, and KRA before you invest. Sources: Bank of Tanzania guidelines and the July 2026 Government Notice on non-resident participation; Bank of Uganda; PwC and Grant Thornton Uganda tax summaries; KRA guidance on foreign income.