How to Buy Treasury Bills in Kenya 2026

Kenya made government securities accessible to regular people years before most African countries even tried. Between the CBK's weekly auctions and the M-Akiba mobile platform, you can start investing in Treasury Bills with as little as KES 3,000 from your phone. And with rates sitting between 12-16% in early 2026, there's real money to be made.

But the process isn't as intuitive as opening a savings account. There are auctions, bid types, tenor options, and tax implications. This guide covers all of it.

What are Treasury Bills?

Treasury Bills are short-term government securities issued by the Central Bank of Kenya (CBK) on behalf of the National Treasury. When you buy a T-Bill, you're lending money to the Kenyan government for a fixed period. They pay you back with interest.

Kenya offers three tenors:

• 91-day: matures in roughly 3 months. Lowest rate, most liquid.
• 182-day: matures in roughly 6 months.
• 364-day: matures in roughly 12 months. Highest rate.

Like Nigerian T-Bills, they're sold at a discount. You pay less than face value upfront and receive the full amount at maturity. The difference between what you paid and what you receive is your return.

Kenya T-Bill rates in 2026

Kenya's rates are lower than Nigeria's because inflation is lower and the shilling has been relatively more stable. But 14-16% on a risk-free investment is still very solid compared to a bank savings account paying 3-5%.

Buying through CBK auctions

The CBK holds T-Bill auctions every week, typically on Thursdays. Auction results come out the same day or the next business day. Here's how to participate:

Step 1: Open a CDS account

You need a Central Depository System (CDS) account at the CBK. This is where your securities are held electronically. Visit any CBK branch with your national ID, KRA PIN, and a bank account statement. The account is free to open.

Step 2: Check the auction calendar

The CBK publishes quarterly auction calendars on their website. Each auction notice lists the amount on offer, the tenors available, and the deadline for submitting bids.

Step 3: Submit your bid

You can bid through your bank (most commercial banks in Kenya accept T-Bill bids from customers) or directly through the CBK. The minimum investment through CBK is KES 100,000, in increments of KES 50,000.

Two bid types exist:

• Competitive: you state the yield you want. Risky, because if your bid is too aggressive, it gets rejected.
• Non-competitive: you accept the weighted average rate from the auction. This is what retail investors should choose. Your bid is almost always accepted up to KES 20 million.

Step 4: Get allotted

After the auction, the CBK allots T-Bills to successful bidders. The discounted purchase price is debited from your linked bank account.

Step 5: Maturity

At maturity, the full face value is credited to your bank account automatically. No action required.

Buying through M-Akiba

M-Akiba changed the game for retail investors in Kenya. It's a mobile-based government bond platform that lets you invest via M-Pesa with a minimum of just KES 3,000.

To register, dial the M-Akiba USSD code or use their app. You'll need your national ID number and M-Pesa account. The platform offers both T-Bills and bonds, and the buying process takes less than five minutes on your phone.

The rates on M-Akiba are the same auction rates you'd get through CBK. No premium, no spread. It's genuinely one of the most accessible government securities platforms in Africa.

Limitations: the amounts on offer through M-Akiba are sometimes limited and specific bond issues sell out. But for regular T-Bill investing at modest amounts (KES 3,000 to KES 500,000), it works brilliantly.

Infrastructure bonds: the tax-free option

Kenya issues infrastructure bonds (IFBs) to fund roads, energy projects, and other public infrastructure. The big draw? Interest on infrastructure bonds is completely exempt from income tax.

This is a massive advantage for anyone in a higher tax bracket. A 14% infrastructure bond gives you the same after-tax return as a ~16.5% taxable investment (assuming 15% WHT). The bonds typically have longer tenors (5-25 years) but can be traded on the secondary market at the Nairobi Securities Exchange.

Infrastructure bonds aren't always available. The government issues them periodically, and they tend to be heavily oversubscribed because of the tax benefit. When one is announced, move quickly.

Withholding tax on T-Bill interest

Regular T-Bill interest in Kenya is subject to 15% withholding tax. This is deducted at source when your interest is paid out at maturity.

Quick example on a KES 1,000,000 investment at 15% for 364 days:

• Gross interest: approximately KES 150,000
• WHT (15%): KES 22,500
• Net interest: approximately KES 127,500

The effective net return drops to about 12.75%. Still much better than a bank savings account, but the tax bite is real. This is exactly why infrastructure bonds (0% tax) are so popular.

T-Bills vs savings accounts vs money market funds

For most Kenyans, a combination works best. Keep your emergency fund in M-Shwari or a money market fund for instant access. Put your medium-term savings in T-Bills. And if you can get an infrastructure bond allocation, that's your best after-tax return.

Use our savings goal calculator to figure out how much you need to invest monthly to reach your target.