Last updated: April 2026
Treasury bills in Kenya are short-term government securities issued by the Central Bank of Kenya (CBK) that let you lend money to the government for 91, 182, or 364 days and earn tax-free interest of 7.5–8.5% per year. You can buy CBK treasury bills directly through the DhowCSD platform with a minimum investment of KSh 100,000, and you can now pay via M-Pesa for amounts up to KSh 250,000.
Treasury bills in Kenya are one of the safest investments available to ordinary Kenyans — they are backed by the full faith of the Kenyan government, which has never defaulted on a domestic debt obligation. With the CBK benchmark rate held at 8.75% as of April 2026 (Source: CBK), T-bill rates have settled into the 7.5–8.5% range, lower than the 15%+ peaks of 2024 but still competitive — especially because the interest is completely tax-free for individual investors. If you have KSh 100,000 or more to park for 3–12 months and want guaranteed, risk-free returns, this guide covers everything you need to know about investing in CBK treasury bills.
Table of Contents
- What Are Treasury Bills in Kenya?
- What Are the Current CBK Treasury Bills Rates?
- How Do Treasury Bills in Kenya Work?
- How to Buy CBK Treasury Bills: Step-by-Step
- Treasury Bills vs Money Market Funds in Kenya
- Smart Strategies for Investing in Treasury Bills in Kenya
- Risks and Limitations of Treasury Bills in Kenya
- The Bottom Line: Are CBK Treasury Bills Worth It in 2026?
- FAQs About Treasury Bills in Kenya
What Are Treasury Bills in Kenya?
Treasury bills (T-bills) are short-term debt instruments issued by the Government of Kenya through the Central Bank of Kenya. When you buy a treasury bill, you are essentially lending money to the government for a fixed period. In return, the government pays you back with interest when the bill matures.
Unlike shares on the NSE or real estate, treasury bills in Kenya carry virtually zero default risk — they are a direct obligation of the sovereign. This makes them the benchmark “risk-free” investment in the Kenyan market.
CBK treasury bills come in three tenors:
| Tenor | Duration | Current Rate (April 2026) | Auction Frequency | Minimum Investment |
|---|---|---|---|---|
| 91-day T-bill | 3 months | ~7.7% | Weekly (Wednesday) | KSh 100,000 |
| 182-day T-bill | 6 months | ~7.9% | Weekly (Wednesday) | KSh 100,000 |
| 364-day T-bill | 12 months | ~8.3% | Monthly | KSh 100,000 |
What Are the Current CBK Treasury Bills Rates?
CBK treasury bills rates have been declining steadily since mid-2024, tracking the central bank’s aggressive rate-cutting cycle. After peaking above 16% in early 2024, rates have dropped to the 7.5–8.5% range as of April 2026. The 91-day T-bill — the most popular tenor — is currently yielding approximately 7.7% (Source: CBK Treasury Bills).
Despite the lower rates, demand remains extremely strong. The most recent 91-day auction attracted KSh 9.24 billion in bids against a KSh 4 billion offer — a 230% subscription rate (Source: CBK auction results, April 2026). This tells you that institutional and retail investors alike still view CBK treasury bills as an attractive place to park money.
| Period | 91-Day Rate | 182-Day Rate | 364-Day Rate | CBK Benchmark |
|---|---|---|---|---|
| April 2024 | 16.05% | 16.32% | 16.55% | 13.00% |
| October 2024 | 15.60% | 15.73% | 15.41% | 12.00% |
| January 2025 | 11.20% | 11.48% | 11.93% | 10.00% |
| July 2025 | 9.20% | 9.50% | 9.85% | 9.50% |
| January 2026 | 7.56% | 7.85% | 8.48% | 8.75% |
| April 2026 | ~7.7% | ~7.9% | ~8.3% | 8.75% |
The key insight here: while 7.7% looks modest compared to the 16% available in 2024, remember that treasury bills in Kenya are tax-free. A 7.7% T-bill yield is equivalent to approximately 9.1% pre-tax on a money market fund or bank deposit (which are subject to 15% withholding tax). That changes the calculus significantly for investors comparing options.
How Do Treasury Bills in Kenya Work?
Treasury bills in Kenya are sold at a discount and redeemed at face value. This means you pay less than KSh 100,000 upfront and receive the full KSh 100,000 at maturity — the difference is your profit.
Here is a worked example for each tenor at current rates:
| Detail | 91-Day T-bill | 182-Day T-bill | 364-Day T-bill |
|---|---|---|---|
| Face value | KSh 100,000 | KSh 100,000 | KSh 100,000 |
| Approximate rate | 7.7% | 7.9% | 8.3% |
| You pay (purchase price) | KSh 98,086 | KSh 96,142 | KSh 92,336 |
| You receive at maturity | KSh 100,000 | KSh 100,000 | KSh 100,000 |
| Your profit (tax-free) | KSh 1,914 | KSh 3,858 | KSh 7,664 |
| Effective annual yield | 7.7% | 7.9% | 8.3% |
On a larger investment of KSh 1 million in 364-day CBK treasury bills, you would earn approximately KSh 76,640 in tax-free interest over 12 months. The equivalent pre-tax return from a money market fund would need to be about 9.8% to match that — and most MMFs currently yield 10–13%, so the gap is narrower than many investors realise.
How to Buy CBK Treasury Bills: Step-by-Step
You do not need a stockbroker or bank to buy treasury bills in Kenya. The CBK’s DhowCSD platform lets individual investors buy directly, and you can now pay via M-Pesa for investments up to KSh 250,000.
Step 1: Open a DhowCSD account. Visit dhowcsd.centralbank.go.ke or download the DhowCSD app from Google Play or the Apple App Store. Register using your national ID or passport, KRA PIN, phone number, and email address. Account opening is free and takes about 10 minutes.
Step 2: Check the auction calendar. CBK publishes the auction schedule on their Treasury Bills page. The 91-day and 182-day T-bills are auctioned every Wednesday. The 364-day T-bill is auctioned once a month. Bids must be submitted by 2:00 PM on the auction date.
Step 3: Place your bid. Log into DhowCSD and navigate to “Primary Market” then “Treasury Bills.” Choose your tenor (91, 182, or 364 days) and enter the amount — minimum KSh 100,000, in multiples of KSh 50,000 above that. You can place either a competitive bid (you specify the rate you want) or a non-competitive bid (you accept the weighted average rate). For most retail investors, non-competitive bids are recommended — you are guaranteed allocation and get a fair rate.
Step 4: Make payment. If your bid is accepted, pay by the Monday after the auction (settlement date) before 2:00 PM. For amounts up to KSh 250,000, use M-Pesa through the DhowCSD app. For larger amounts, use RTGS or EFT bank transfer to the CBK collection account shown in your DhowCSD portal.
Step 5: Receive confirmation. Once payment clears, the T-bill is credited to your DhowCSD account. You will see it listed under “My Holdings” with the maturity date and face value.
Step 6: Collect your returns. At maturity, the full face value (KSh 100,000 per unit) is automatically deposited into the bank account linked to your DhowCSD profile. No action needed — it arrives on the maturity date. You can then reinvest or withdraw.
The entire process — from opening your account to placing your first bid — can be done from your phone. If you are already comfortable buying shares on Ziidi Trader, the DhowCSD process will feel familiar.
Treasury Bills vs Money Market Funds in Kenya
This is the most common comparison Kenyan investors make — and the answer depends on your priorities. Both are low-risk, short-term instruments, but they serve different purposes.
| Feature | CBK Treasury Bills | Money Market Funds |
|---|---|---|
| Current returns | 7.5–8.3% (tax-free) | 10–14% (before 15% WHT) |
| After-tax effective return | 7.5–8.3% | 8.5–11.9% |
| Minimum investment | KSh 100,000 | KSh 100 – KSh 1,000 |
| Liquidity | Locked until maturity (91–364 days) | Daily withdrawals (T+1 to T+3) |
| Risk | Sovereign guarantee (risk-free) | Very low (fund-level risk) |
| Tax on interest | 0% (exempt) | 15% withholding tax |
| Access | DhowCSD platform + M-Pesa | Mobile apps, M-Pesa, bank transfer |
| Best for | Large sums parked 3–12 months | Emergency fund, daily savings |
The bottom line on this comparison: treasury bills in Kenya win on safety and tax efficiency, while money market funds win on accessibility and liquidity. A 7.7% tax-free T-bill yield is equivalent to a 9.1% pre-tax MMF return. Since top MMFs like Cytonn, Ziidi, and Lofty-Corban currently yield 11–14% before tax (roughly 9.4–11.9% after tax), MMFs have a slight edge on raw returns right now. But T-bills are sovereign-guaranteed while MMFs carry fund-level credit risk.
The smartest approach? Use both. Keep your emergency fund in a money market fund for instant access, and invest larger sums in CBK treasury bills for the tax-free yield and government guarantee. If you’re just starting to invest with a small amount, begin with an MMF and move to T-bills once you have KSh 100,000.
Smart Strategies for Investing in Treasury Bills in Kenya
Simply buying one T-bill and waiting for maturity works, but these strategies can optimise your returns and liquidity:
The Ladder Strategy: Split your investment across multiple T-bill auctions so that one matures every month. For example, invest KSh 100,000 in 91-day T-bills every month for three months. After the third month, one T-bill matures every month, giving you both continuous exposure to treasury bills in Kenya and regular liquidity. This is the most popular strategy among retail T-bill investors.
The Barbell Strategy: Invest half your allocation in 91-day T-bills (for liquidity) and the other half in 364-day T-bills (for higher returns). The 91-day portion gives you access to cash every quarter, while the 364-day portion locks in the higher 8.3% rate. Rebalance as each tranche matures.
The Roll-Over Strategy: When your T-bill matures, immediately reinvest the proceeds into a new T-bill of the same tenor. This creates a compounding effect — your KSh 100,000 becomes KSh 101,914 after 91 days, which you reinvest to earn interest on a larger base. Over multiple cycles, the compounding effect accelerates your wealth growth even at modest rates.
Rate-Timing Strategy: When CBK treasury bills rates are falling (as they have been since 2024), lock in longer tenors (364-day) to capture the current higher rate before it drops further. When rates are rising, stay short (91-day) so you can reinvest at the new higher rate when your bill matures. As of April 2026, rates appear to be stabilising — the CBK held its benchmark at 8.75% in April — so the 364-day T-bill at 8.3% offers a reasonable lock-in.
Risks and Limitations of Treasury Bills in Kenya
Treasury bills in Kenya are often called “risk-free,” but that label applies only to default risk. There are other real considerations:
Inflation risk: If inflation exceeds the T-bill rate, your real return is negative. Kenya’s inflation was approximately 3.6% in early 2026 (Source: KNBS), so a 7.7% T-bill gives you about 4.1% in real terms — decent, but slim. If inflation spikes again (it hit 9.6% in 2022), your T-bill returns could lose purchasing power.
Reinvestment risk: When your T-bill matures, the prevailing rate may be lower than what you earned. Investors who locked in 16% T-bills in 2024 and saw rates fall to 7.7% by 2026 experienced this firsthand. You cannot predict future rates, so diversifying across tenors and asset classes is prudent.
Liquidity lock-up: Your money is locked for the full duration — 91, 182, or 364 days. There is no penalty-free early withdrawal. While a secondary market exists, it is thin and you may sell at a loss if you need cash urgently. For money you might need on short notice, a money market fund is more appropriate.
High minimum investment: At KSh 100,000 minimum, CBK treasury bills are not accessible to everyone. Many Kenyans who can invest KSh 1,000–50,000 are better served by money market funds or low-minimum investment products.
Opportunity cost: Money in T-bills cannot be deployed elsewhere. If the stock market rallies or a better opportunity emerges, your capital is locked. This is the trade-off for safety — you sacrifice upside potential for guaranteed returns.
The Bottom Line: Are CBK Treasury Bills Worth It in 2026?
At 7.5–8.3% tax-free, CBK treasury bills remain one of the best risk-adjusted investments in Kenya. The tax exemption is the real differentiator — a 7.7% T-bill is equivalent to earning 9.1% on a taxable investment. For conservative investors, retirees, or anyone parking large sums for 3–12 months, treasury bills in Kenya are hard to beat.
However, they are not ideal for everyone. If you are investing small amounts (under KSh 100,000), need daily liquidity, or are targeting higher growth, money market funds or shares on the NSE may serve you better.
Bull case: You build a T-bill ladder with KSh 500,000+, lock in 8.3% on 364-day bills before rates drop further, and earn guaranteed tax-free income. Your principal is 100% safe, you sleep well at night, and you have a predictable income stream every quarter.
Bear case: Rates continue falling below 7%, inflation picks up, and your real returns shrink to near zero. Meanwhile, equities and MMFs outperform. You have missed growth opportunities because your money was locked in low-yielding government paper.
The prudent approach? Allocate 20–40% of your investment portfolio to CBK treasury bills for safety, and deploy the rest in higher-yielding instruments like MMFs, equities, and property. This gives you the best of both worlds — a solid foundation of guaranteed returns with growth exposure on top.
This is not financial advice. Always do your own research before investing. Past returns on treasury bills in Kenya do not guarantee future performance.
FAQs About Treasury Bills in Kenya
What is the minimum amount to invest in treasury bills in Kenya?
The minimum investment for CBK treasury bills is KSh 100,000. Any amount above the minimum must be in multiples of KSh 50,000 (so KSh 150,000, KSh 200,000, etc.). For amounts up to KSh 250,000, you can pay directly via M-Pesa through the DhowCSD platform.
Are treasury bills in Kenya tax-free?
Yes, interest earned on treasury bills in Kenya is exempt from withholding tax for individual investors. This is one of the biggest advantages of T-bills over money market funds and bank deposits, which are subject to 15% withholding tax. A 7.7% T-bill yield is equivalent to approximately 9.1% pre-tax on a taxable instrument.
Can I lose money on CBK treasury bills?
You cannot lose your principal on CBK treasury bills — they are backed by the sovereign guarantee of the Government of Kenya. However, you can lose purchasing power if inflation exceeds the T-bill rate, and you may sell at a loss if you try to exit early through the secondary market before maturity.
How do I buy treasury bills in Kenya via M-Pesa?
Open a free account on the CBK DhowCSD platform (website or mobile app), complete your KYC with your national ID and KRA PIN, then place a bid during auction week. For investments up to KSh 250,000, you can pay directly from M-Pesa through the DhowCSD app’s “Transactions” tab. The full process takes about 15 minutes.
What is the difference between competitive and non-competitive bids?
With a competitive bid, you specify the exact interest rate you want — if CBK accepts your rate, you get that return; if not, your bid fails. With a non-competitive bid, you accept whatever weighted average rate the auction produces and are guaranteed allocation. For most retail investors, non-competitive bids are the safer choice.
How often does CBK auction treasury bills?
The 91-day and 182-day CBK treasury bills are auctioned every Wednesday. The 364-day T-bill is auctioned once a month. Auction dates and results are published on the CBK Treasury Bills page. Bids close at 2:00 PM on auction day, and results are released the same afternoon.
Can I withdraw my money before a treasury bill matures?
There is no early redemption for CBK treasury bills. However, you can sell your T-bill on the secondary market through the DhowCSD platform or a commercial bank. The secondary market for T-bills is thin, so you may need to accept a discount on the face value. If you anticipate needing the money sooner, consider the 91-day tenor or keep an emergency fund in a money market fund.
Are treasury bills better than fixed deposits in Kenya?
In most cases, yes. CBK treasury bills offer comparable or higher rates than most fixed deposits, and the interest is tax-free (versus 15% WHT on fixed deposit interest). T-bills also carry zero credit risk since they are government-backed, while fixed deposits carry bank-level risk. The only advantage of fixed deposits is that some banks offer more flexible terms and lower minimums.
Ready to invest in CBK treasury bills? Start by opening your free DhowCSD account at dhowcsd.centralbank.go.ke, then place a non-competitive bid in the next Wednesday auction. While you wait for your first T-bill to mature, consider building a diversified portfolio with money market funds for liquidity and NSE shares for growth.
