How to Buy Treasury Bills in Kenya on DhowCSD (Step-by-Step, 2026)

You buy Treasury bills in Kenya by opening a free CSD account on the Central Bank of Kenya's DhowCSD portal (dhowcsd.centralbank.go.ke) or its app, then placing a bid from KES 50,000 when CBK auctions 91-day, 182-day and 364-day bills every week. Pay by M-Pesa (up to KES 250,000) or bank transfer before the Monday settlement deadline. In the auction dated 5 October 2026, the 91-day bill cleared at 8.77%, the 182-day at 8.89% and the 364-day at 9.04% — all before the 15% withholding tax that comes off automatically before you're paid.

Treasury bills are the shortest, most liquid way to lend to the Kenyan government — you get your money back in three to twelve months, instead of the two to thirty years you'd wait with a full Treasury bond.

Quick facts: buying Treasury bills in Kenya (checked October 2026)

What is DhowCSD?

DhowCSD is the Central Bank of Kenya's own Central Securities Depository — the online system that replaced the old paper-based process of opening a CDS account at a bank branch. It went live in 2023, and it's now the only way individuals buy and hold Treasury bills and bonds directly from CBK, whether through the web portal or the mobile app.

Every investor needs an active CSD account on DhowCSD before they can bid. Only investors with active CSD accounts are eligible to take part in any auction — CBK says so on every auction notice.

How do you open a DhowCSD account?

You need a clear colour passport photo, your national ID or passport, and your KRA PIN (compulsory for Kenyan residents). Then, according to CBK's own account-opening guide:

1. Go to the portal or app. Visit dhowcsd.centralbank.go.ke on a computer, or download the DhowCSD app from the Play Store or App Store.
2. Click "Create Account" and enter an email address, username and password.
3. Accept the terms and conditions and click "start registration."
4. Select "Physical Person" as your user type, then fill in your name, date of birth, nationality, occupation and KRA PIN.
5. Add your contact details — your main phone number and postal address.
6. Enter your settlement details: your bank account number, the account name exactly as your bank has it, and your settlement bank from the dropdown.
7. Upload your documents: your passport photo, your ID or passport, and your KRA PIN (plus a KRA exemption certificate if that applies to you).
8. Enter the verification token sent to your email and click verify.
9. Wait for approval. Your settlement bank confirms the account, usually within 48 working hours, and CBK emails you your username.

Finish all of this within seven days — CBK auto-deletes incomplete profiles after that, and you'll start again from scratch.

How does Treasury bill bidding actually work?

CBK auctions 91-day, 182-day and 364-day bills every week, with bids closing by 2 p.m. on Thursday. You choose one of two bid types on DhowCSD:

• Non-competitive bid — you don't name a rate. You're allotted the weighted average rate that competitive bidders settle on, and your bid is accepted in full as long as the auction isn't oversubscribed beyond what CBK wants to raise. This is what most individual investors use. Minimum: KES 50,000.
• Competitive bid — you state the rate you want. If your rate is at or below what CBK accepts, you get allotted at your rate; if you ask for too much, you may be rejected or only partly filled. Minimum: KES 2,000,000, so this is really for bigger investors and institutions.

Results come out the same day. Log in to DhowCSD, go to "Transactions," and you'll see whether your bid succeeded and how much you owe.

How do you pay for Treasury bills via M-Pesa?

In a statement on its official X account on 21 November 2025, CBK said investors can now settle successful Treasury bill and bond bids by M-Pesa directly from the DhowCSD app or portal's "Transactions" tab, for amounts up to KES 250,000 per transaction. For anything above that, CBK's standard instruction is to pay by bank transfer (RTGS), quoting your CSD account number, the amount payable and the payment key DhowCSD gives you.

Either way, payment is due by 2 p.m. on the Monday after the auction — miss it and your successful bid is cancelled.

What are the current Treasury bill rates in Kenya?

Rates move at every weekly auction, set by how much investors bid and how much CBK wants to borrow that week. Here's the most recent auction CBK has published, compared with the one before it:

Source: CBK Treasury bill auction results, dated 05/10/2026.

These are the weighted average rates paid to accepted bidders, not a promise of what you'll get next week. Always check DhowCSD or CBK's site for the current auction before you bid — don't rely on last month's number.

Are Treasury bills taxable in Kenya?

Yes. Interest on Treasury bills is subject to a 15% withholding tax, the standard rate KRA charges on interest income. It's deducted automatically before CBK pays you. Under KRA's definition of qualifying interest, that withholding tax is final for resident individuals — you don't owe anything more on it, and you don't need to list it again when you file your KRA returns the way you would business or rental income.

Treasury bonds follow a similar rule, with one exception that matters:

• Ordinary Treasury bonds (2 years and up): 15% withholding tax, same as Treasury bills.
• Bonds with a maturity of 10 years or more: a reduced 10% withholding tax for residents.
• Infrastructure bonds: still fully tax-exempt. Parliament rejected a proposed 5% withholding tax on infrastructure bond interest in December 2024, and CBK's infrastructure bond prospectus from August 2026 — coupons of 11.75% to 12.74% — states plainly that "the bond does not attract withholding tax."

Treasury bills vs your other short-term options

If you want cash you can pull out any week, a money market fund suits you better than a T-bill — run the numbers through our money market fund calculator, or compare current options in our guide to digital savings apps in Kenya. If you're already a SACCO member, run the numbers against your SACCO's payout on our SACCO dividends calculator.

What to watch out for

• Your settlement bank account name must match your ID exactly. A mismatch is the most common reason DhowCSD registrations stall.
• The seven-day registration window is real. Start the process when you have all your documents ready, not before.
• Rates aren't locked until your bid is accepted. A non-competitive bid gets you the average rate on the day — you won't know the exact number until results are out.
• M-Pesa only covers up to KES 250,000. Bidding more than that means you need RTGS, which usually means asking your bank to process it before the Monday deadline — don't leave it to the last hour.
• Treasury bills are meant to be held to maturity. Unlike bonds, which trade on the Nairobi Securities Exchange, there isn't an active secondary market for individual T-bill holders to exit early. Only invest money you won't need before the bill matures.

Smart strategies for Treasury bill investors

• Ladder your maturities. Split one investment across 91-day, 182-day and 364-day bills so cash frees up at different times instead of all at once.
• Reinvest on maturity. Rolling your principal and interest into the next auction compounds your returns — see how that adds up over time with our compound interest calculator.
• Use non-competitive bids unless you're investing KES 2 million or more. Competitive bidding only pays off if you understand where rates are heading; most individual investors are better off taking the average rate.

Final thoughts

Treasury bills are about as close to risk-free as investing gets in Kenya — the government backs them, the process now runs entirely online, and you can get started with KES 50,000 and a phone. The trade-off is that your return moves with the market every week, and your cash is tied up until maturity. If you're weighing this against Ghana's market, Ghana's Treasury bills and bonds work differently since the 2023 debt restructuring — worth reading if you split savings across both countries.

Frequently asked questions

What is the minimum amount to buy a Treasury bill in Kenya?

KES 50,000 for a non-competitive bid, in multiples of KES 50,000. Competitive bids need at least KES 2,000,000, so most individual investors use the non-competitive route.

Can I buy Treasury bills using M-Pesa?

Yes. Since November 2025, DhowCSD lets you pay for successful Treasury bill and bond bids by M-Pesa, up to KES 250,000 per transaction, through the "Transactions" tab on the app or portal. Larger amounts need a bank transfer (RTGS).

How much tax do I pay on Treasury bill interest in Kenya?

A 15% withholding tax, deducted automatically before you're paid. It's a final tax, so you don't declare it again on your KRA return.

What's the difference between a competitive and non-competitive bid?

A non-competitive bid accepts whatever average rate the auction settles at and needs only KES 50,000. A competitive bid lets you name your own rate but needs at least KES 2,000,000, and you risk being rejected if you ask for too much.

How long does it take to open a DhowCSD account?

Registration itself takes minutes if you have your documents ready. Approval from your settlement bank usually takes up to 48 working hours after that.

Are Treasury bills safer than Treasury bonds or money market funds?

Treasury bills and bonds carry the same government-backed risk — the difference is mainly how long your money is tied up. Money market funds spread your cash across several instruments and let you withdraw anytime, which makes them more liquid but not necessarily lower-risk.