How to build a T-bill ladder in Kenya
Updated with the auction for bills issued 19 Oct 2026 · 7 min read
A T-bill ladder is a simple idea. Instead of putting all your money into one Treasury bill, you split it into several bills that mature at different times. Every few weeks, one of them pays out. You can spend that money or put it into a new bill. You earn T-bill rates and still see cash come back on a regular rhythm.
This guide shows how to build one on DhowCSD in KSh 50,000 steps, with worked examples at this week's rates. If you're still choosing between bill lengths, start with 91 vs 182 vs 364-day T-bills.
How a ladder works
Each bill is a rung. The Central Bank of Kenya (CBK) sells 91-day, 182-day and 364-day bills at an auction every Thursday. The minimum is KSh 50,000 face value, in steps of KSh 50,000, so each rung is KSh 50,000, KSh 100,000 and so on. You pay less than the face value now, and 15% tax on the interest is taken upfront. You get the full face value back at maturity.
You make three choices:
- Spacing: how often you want money back, say monthly or quarterly.
- Length: 91, 182 or 364-day bills. Longer bills usually pay more but take longer to set up.
- Size: the same amount in every rung (an even ladder) or bigger rungs where you have a bill to pay (an uneven ladder).
A handy detail: bills are issued on a Monday, and 91, 182 and 364 days are exactly 13, 26 and 52 weeks. So a bill usually matures on a Monday too, which keeps the rhythm tidy. Public holidays can shift a date.
Example 1: a monthly ladder from KSh 150,000 face value
This is the quickest way to get money back every month. Use three 91-day bills of KSh 50,000 each, bought about a month apart.
- Week 1: bid for a KSh 50,000 91-day bill.
- Week 5: bid for a second one.
- Week 9: bid for a third. Keep the waiting money in a money market fund so it earns something in the meantime.
- From week 14: one bill matures every 4 or 5 weeks. Roll each one into a new 91-day bill.
| Per KSh 50,000 rung (91-day) | This week |
|---|---|
| You pay (price + tax) | KSh 49,093 |
| Interest after tax | KSh 907 |
| Cash to set up three rungs | KSh 147,278 |
| Yearly return after tax | 7.41% |
Each month KSh 50,000 comes back. A new KSh 50,000 bill costs about KSh 49,093, so about KSh 907 is left over each time for you to spend or save. Over a year that adds up to roughly KSh 10,888 after tax, if rates stay where they are. They won't stay exactly there, so treat it as a guide.
Example 2: a 364-day ladder (higher rate, slower to build)
The 364-day bill usually pays more. This week it pays 7.58% a year after tax, against 7.41% for the 91-day bill. To earn that rate and still get monthly cash, buy one KSh 50,000 364-day bill every month for twelve months. That takes about KSh 557,832 in total, built up over the year.
From month 13, one bill matures every month. Each time you get KSh 50,000 back, a new bill costs about KSh 46,486, and about KSh 3,514 is left over.
Want fewer moving parts? Use four rungs instead of twelve: a KSh 50,000 364-day bill every three months. After the first year, one bill matures each quarter.
The catch is time. It takes a year to finish, and the extra pay for the 364-day bill is sometimes small. When the rates are close, a 91-day ladder earns about the same and is ready in two months. Check the gap in this week's T-bill rates.
Even vs uneven ladders
An even ladder puts the same amount in every rung. It suits steady income: the same cash, on the same rhythm, with little to think about.
An uneven ladder sizes each rung to a bill you already know is coming, such as school fees at the start of each term, an insurance premium or a land instalment. For example:
| Coming up | Bill to buy now | Face value |
|---|---|---|
| Fees of about KSh 95,000 in 3 to 4 months | 91-day | KSh 100,000 |
| KSh 40,000 deposit in about 6 months | 182-day | KSh 50,000 |
| KSh 150,000 instalment in about a year | 364-day | KSh 150,000 |
Two rules: round each rung up to the next KSh 50,000, and pick a bill that matures before the date, never after. A bill that pays a week late doesn't help, and getting out early costs you.
Rolling over: keeping the ladder going
When a rung matures you have two choices. Take the money to your bank account, or put it into a new bill so the ladder keeps turning.
- Roll it on DhowCSD. DhowCSD lets you ask for a maturing bill to be rolled into a new one. Check the app for the current steps and cut-off time. Because the new bill costs less than its face value, any money left over goes to your bank account.
- Or bid early. Bid at the Thursday auction just before your bill matures. The new bill settles the following Monday, usually the same day the old one pays out, so your money is idle for few or no days. Payment is due by 2 pm that Monday.
Each roll is at that week's rate, which may be higher or lower than before. Keep the same bill length if you want the same rhythm. Switching lengths moves the rungs around.
Ladder vs money market fund
| T-bill ladder | Money market fund | |
|---|---|---|
| Starting amount | KSh 50,000 per rung | Small amounts, set by each fund |
| Getting your money | When each rung matures | Usually 1 to 3 days |
| Rate | Fixed when you buy each bill | Changes daily |
| Return after tax now | 7.41% (91-day) to 7.58% (364-day) | About 6.6% to 9.4% (as at 13 Oct 2026) |
| Backed by | The Government of Kenya | The fund's investments (regulated by the CMA, not guaranteed) |
Many savers use both. Keep the emergency fund and the "waiting room" money in a fund. Ladder the money you won't need before each rung matures. See this week's money market fund rates.
Risks to know
- Rates can fall. Each rung rolls at the new rate. A ladder spreads this risk out but doesn't remove it.
- Getting out early costs you. T-bills aren't traded on the stock exchange. The usual way out is a CBK rediscount at a penalty rate.
- Inflation. With inflation at 6.8% (Sep 2026), the 364-day bill's real return is about 0.73% a year.
- Missed deadlines. If you pay after 2 pm on the settlement Monday, your bid lapses and that rung sits idle for a week.
- One borrower. Every rung is a loan to the Government of Kenya. The risk of it not paying shillings back is low, but not zero.
Ready to buy your first rung? Follow the DhowCSD guide, and check any amount in the T-bill calculator.
Frequently asked questions
What is a T-bill ladder?
It's a set of Treasury bills that mature at different times, so some money comes back every few weeks or months. You can spend each payout or roll it into a new bill.
How much do I need to start a T-bill ladder in Kenya?
The CBK minimum is KSh 50,000 face value per bill, in steps of KSh 50,000. A three-rung monthly ladder of 91-day bills needs about KSh 147,278 at this week's rate, bought over two months. Some older guides still say KSh 100,000, but the CBK now lists KSh 50,000.
Can I get monthly income from T-bills?
Yes, by laddering. Three 91-day bills bought about a month apart, or twelve 364-day bills bought monthly, give you one maturity each month. The income is the interest. The KSh 50,000 is your money coming back.
Is a T-bill ladder better than a money market fund?
They do different jobs. A ladder fixes your rate on each bill until it matures. A fund lets you withdraw in a few days, but its yield moves. Many people keep emergency money in a fund and ladder the rest.
What happens when a T-bill matures on DhowCSD?
The face value is paid to your bank account on the maturity date, unless you chose to roll it into a new bill.
Do I pay tax on every rung?
Yes. Each bill's interest has 15% withholding tax taken upfront, so the returns in this guide are already after tax.
For education only, not financial advice. Rates change at every weekly auction, and auction rules can change: check the Central Bank of Kenya's results and DhowCSD before you invest.