Treasury Bills and Bonds — Lend to the Government and Get Paid

Government securities are one of the safest investments available. Yet most Kenyans have never bought one.

What Are Treasury Bills and Bonds

When the Kenyan government needs to borrow money, it issues treasury bills and bonds. You lend the government money, they pay you interest, and return your principal at the end of the term. The government has never defaulted on a domestic obligation — making these among the lowest-risk investments available.

Treasury Bills vs Treasury Bonds

Treasury bills are short-term — 91, 182, or 364 days. They are sold at a discount and you receive the full face value at maturity. Treasury bonds are long-term — 2 to 30 years. They pay a fixed coupon rate every six months. Current Kenyan bonds offer rates of 12-18%.

How to Buy

Buy through the Central Bank of Kenya DhowCSD platform online. Also available through commercial and investment banks. Minimum for treasury bills is KES 100,000. For bonds, KES 50,000.

Your Action Step

Visit the Central Bank of Kenya website and read about the DhowCSD platform. Check current treasury bill rates. If you have KES 100,000 you do not need for 91 days, a treasury bill is one of the safest places to put it.