If you’re looking for safe, predictable, and beginner-friendly investments, Treasury Bills and Bonds are a great place to start. Backed by the Government of Kenya, they are among the lowest-risk investment options available to Kenyan investors.
This guide walks you through exactly how to invest in Treasury Bills and Bonds in Kenya, step by step—no jargon, no confusion.
What Are Treasury Bills and Treasury Bonds?
Treasury Bills (T-Bills) and Treasury Bonds (T-Bonds) are government securities issued by the Central Bank of Kenya on behalf of the government.
When you invest in them, you are essentially lending money to the government, which pays you back with interest.
Difference Between Treasury Bills and Bonds
| Feature | Treasury Bills | Treasury Bonds |
|---|---|---|
| Investment period | Short-term | Long-term |
| Duration | 91, 182, or 364 days | 2–30 years |
| Returns | Discount (interest paid upfront) | Fixed interest (coupon) |
| Risk level | Very low | Very low |
| Best for | Short-term goals | Long-term income |
Why Invest in Treasury Bills & Bonds in Kenya?
✔ Backed by the Government of Kenya
✔ Low risk and stable returns
✔ Predictable income
✔ No management fees
✔ Ideal for conservative and beginner investors
They are especially useful for capital preservation and steady income.
Step 1: Decide Between Treasury Bills or Bonds
Choose based on your goals:
- Choose T-Bills if:
- You want short-term returns
- You need liquidity within a year
- Choose T-Bonds if:
- You want long-term, regular income
- You’re planning for retirement or long-term goals
Step 2: Open a CDS Account with CBK
To invest, you need a Central Depository System (CDS) account at the Central Bank of Kenya.
What You Need:
- National ID or Passport
- KRA PIN
- Completed CDS account form
💡 Opening a CDS account at CBK is free.
Step 3: Check the Auction Calendar
The Central Bank publishes a weekly auction calendar showing:
- Type of security (Bill or Bond)
- Tenor (duration)
- Auction date
- Minimum investment amount
Minimum Investment:
- Treasury Bills: KES 100,000
- Treasury Bonds: KES 50,000
Step 4: Submit Your Application
You can apply in two ways:
Option 1: Via CBK Direct (Online)
- Log in to the CBK Direct portal
- Select the security you want
- Enter the amount and interest rate (or accept market rate)
Option 2: Through a Bank or Investment Agent
Banks and investment firms can submit applications on your behalf.
Step 5: Fund Your Investment
Once you apply, transfer the investment amount to the CBK settlement account before the auction deadline.
Failure to fund on time means your application won’t be considered.
Step 6: Auction Results & Allocation
After the auction:
- CBK announces accepted interest rates
- Successful bidders receive confirmation
- Securities are credited to your CDS account
If unsuccessful, your money is refunded.
How You Earn Returns
Treasury Bills
You buy at a discount and receive the full face value at maturity.
Treasury Bonds
You receive interest payments every 6 months, plus your principal at maturity.
Can You Sell Before Maturity?
Yes. Both Bills and Bonds can be sold in the secondary market through commercial banks or investment firms.
💡 Note: Market prices may be higher or lower depending on interest rates.
Common Mistakes to Avoid
❌ Ignoring auction dates
❌ Bidding unrealistic interest rates
❌ Investing emergency funds
❌ Not understanding maturity periods
❌ Failing to diversify beyond government securities
Treasury Bills & Bonds vs Other Investments
| Investment | Risk | Returns | Stability |
|---|---|---|---|
| Treasury Bills & Bonds | Very Low | Moderate | High |
| Shares (Stocks) | Medium–High | High | Volatile |
| Unit Trusts | Low–Medium | Moderate | Moderate |
| SACCOs | Low–Medium | Moderate | Stable |
Final Thoughts
Treasury Bills and Bonds are an excellent foundation for any investment portfolio—especially for beginners, conservative investors, and those seeking stable income.
If you value safety, predictability, and discipline, government securities deserve a place in your financial plan.
What to Read Next on Financial.co.ke
👉 How to Build Your First Investment Portfolio
👉 Understanding the Nairobi Securities Exchange (NSE)
👉 Investing 101: A Beginner’s Guide for Kenyans
Smart investing starts with smart steps 💼📈
