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

You can lend money to the Kenyan government from KES 50,000, straight from your phone. You open a free account on the Central Bank's DhowCSD portal or app, then bid at the weekly Treasury bill auction.

You can pay by M-Pesa for amounts up to KES 250,000. At the 5 October 2026 auction, the 364-day bill paid 9.04%, before the 15% tax that comes off automatically. Here's how to open your account and place your first bid.

Treasury bills are the shortest, easiest 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 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 process of opening a CDS account at a bank branch. It started in 2023, and it's now the only way individuals buy and hold Treasury bills and bonds directly from CBK, on the website or the 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, as CBK says 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 deletes unfinished profiles after that, and you'd have to start again.

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 get the average rate that the competitive bidders settle on, and your bid is accepted in full unless the auction is heavily oversubscribed. This is what most individuals use. Minimum: KES 50,000.
• Competitive bid: you name the rate you want. If your rate is at or below what CBK accepts, you get your rate. If you ask for too much, you may be rejected or only partly filled. Minimum: KES 2,000,000, so it's 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, you must pay 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 average rates paid to successful bidders, not a promise of what you'll get next week. Always check DhowCSD or CBK's website for the current auction before you bid, rather than relying on last month's figure.

Are Treasury bills taxable in Kenya?

Yes. Interest on Treasury bills has 15% withholding tax, the standard rate KRA charges on interest, taken off automatically before CBK pays you. Under KRA's definition of qualifying interest, that tax is final for resident individuals. You don't owe anything more, and you don't list it again when you file your KRA returns, unlike 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-free. Parliament rejected a proposed 5% withholding tax on infrastructure bond interest in December 2024, and CBK's infrastructure bond prospectus from August 2026, with interest rates of 11.75% to 12.74%, says plainly that "the bond does not attract withholding tax."

Treasury bills vs your other short-term options

If you want cash you can take out any week, a money market fund suits you better than a T-bill. Compare Kenya's best money market funds by return and minimum and try our money market fund calculator, or see our guide to digital savings apps in Kenya. If you're already in a SACCO, compare its payout with our SACCO dividends calculator.

Mistakes to avoid when buying T-bills

• 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.
• Your rate isn't fixed until your bid is accepted. A non-competitive bid gets you the day's average rate, and you won't know the exact figure until the results come out.
• M-Pesa only covers up to KES 250,000. For bigger bids you need RTGS, which usually means asking your bank to send 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 when it matures. Rolling your money and interest into the next auction grows your returns over time. See how it adds up 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 whole process is online, and you can start with KES 50,000 and a phone. The downside is that your return changes with the market every week, and your cash is tied up until maturity. If you're also looking at Ghana, Ghana's Treasury bills and bonds work differently since the 2023 debt restructuring, which matters if you split savings between both countries. Further south, Malawi's treasury bills pay higher rates but carry a 20% withholding tax.

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 main difference is how long your money is tied up. Money market funds spread your cash across several investments and let you withdraw any time, so they're easier to access, but not necessarily lower risk. A SACCO can pay more than both through its yearly dividend, but it usually ties up your money, unlike a T-bill with a maturity date you know in advance.