How Treasury Bills Work in Kenya
A Treasury bill (T-bill) is a short-term loan you give to the Government of Kenya. The Central Bank of Kenya (CBK) sells T-bills every week on behalf of the government, in three terms: 91 days, 182 days and 364 days.
How you earn interest
T-bills don't pay interest in instalments. Instead, you buy them at a discount: you pay less than the face value today and receive the full face value at maturity. The difference is your interest.
Kenyan T-bill interest is subject to 15% withholding tax, which is paid upfront when you buy. That's why your real (net) return is lower than the rate announced at the auction.
Worked example
Say you want KSh 100,000 in 364 days, and the auction rate is 9.0431% (CBK auction of 28 September 2026):
| Price paid to CBK | KSh 91,727.70 |
| Withholding tax (15%) | KSh 1,240.85 |
| Total cash paid today | KSh 92,968.54 |
| Received at maturity | KSh 100,000.00 |
| Net interest earned | KSh 7,031.46 |
| Net annual return | 7.58% |
The formula: Price = Face value ÷ (1 + rate × days ÷ 365).
How to buy T-bills
- Open an account on the CBK's DhowCSD app or web portal and complete the verification (KYC).
- Go to Auctions, choose a tenor and select Non-Competitive. This means you accept the average rate set at that week's auction.
- Enter your amount. The minimum is KSh 50,000 face value, in multiples of KSh 50,000.
- Check the auction results, then pay by 2pm on the settlement Monday.
- At maturity, the full face value is paid into your bank account.
Auctions happen weekly, usually on Thursday. You can also buy through a commercial or investment bank.
Frequently asked questions
Which tenor pays the most? Longer tenors usually pay slightly higher rates, but your money is committed for longer. Compare the net returns above.
Is the 15% tax final? For resident individuals, withholding tax on qualifying interest is generally treated as a final tax. Companies, pension schemes and non-residents may be treated differently. Confirm with KRA or your adviser.
Where do I find the latest rates? The CBK publishes auction results every week on centralbank.go.ke. Enter the new rate in the calculator above.
What if I have less than KSh 50,000, or need access to my money? A money market fund may suit you better: you can start small and withdraw anytime. Compare money market fund rates.