Treasury Bills, commonly called T-Bills, are short-term government securities issued by the Government of Uganda.
They allow investors to lend money to the government for a relatively short period and earn a return.
In Uganda, Treasury Bills are commonly issued with three maturity periods:
- 91 days
- 182 days
- 364 days
Unlike Treasury Bonds, Treasury Bills do not normally make regular interest payments. Instead, they are generally bought for less than their face value and redeemed at full face value when they mature.
This guide explains how Treasury Bills work in Uganda, how returns are earned, how much you need to invest and what to consider before investing.
What Are Treasury Bills in Uganda?
A Treasury Bill is a short-term government security issued by the Government of Uganda.
Bank of Uganda conducts government securities auctions through which Treasury Bills are issued.
When you invest in a Treasury Bill, you are effectively lending money to the Government of Uganda for a defined period.
Instead of receiving coupon payments, as you generally would with a Treasury Bond, you earn your return through the difference between the price you pay and the face value you receive at maturity.
What Is an Example of a Treasury Bill?
Suppose you acquire a Treasury Bill with a face value of:
UGX 1,000,000
but the price you pay is:
UGX 900,000
When the Treasury Bill matures, you receive:
UGX 1,000,000
Your gross return would therefore be:
UGX 1,000,000 − UGX 900,000 = UGX 100,000
The actual price and return depend on the terms and yield available when you invest.
What Are the Different Types of Treasury Bills in Uganda?
Uganda commonly issues three Treasury Bill maturities.
91-Day Treasury Bills
These mature after approximately three months.
They have the shortest maturity among the commonly issued Treasury Bills.
182-Day Treasury Bills
These mature after approximately six months.
They sit between the 91-Day and 364-Day Treasury Bills in terms of investment period.
364-Day Treasury Bills
These mature after approximately one year.
They have the longest maturity among Uganda’s commonly issued Treasury Bills.
The appropriate maturity depends partly on how long you want your money invested and when you expect to need it again.
How Do Treasury Bills Work?
Treasury Bills generally work on a discount basis.
You purchase the Treasury Bill for less than its face value.
At maturity, you receive the full face value.
The difference represents your gross return.
The basic calculation is:
Treasury Bill Return = Face Value − Purchase Price
For example:
Face Value: UGX 5,000,000
Purchase Price: UGX 4,600,000
Gross Return: UGX 400,000
This is different from Treasury Bonds, where investors generally receive coupon payments every six months.
For a detailed calculation guide, see How to Calculate Treasury Bill Returns in Uganda.
Treasury Bill Rates in Uganda
Treasury Bill rates are not fixed permanently.
They change as new auctions take place and market conditions change.
Bank of Uganda auction results typically provide information including:
- Cut-off price
- Discount rate
- Money market yield
- Effective yield
- Amount offered
- Amount tendered
- Amount accepted
Because rates change, it is better to check the latest auction results rather than rely on a historical range.
For the latest available figures, see Treasury Bill Rates in Uganda Today.
Why Do Treasury Bill Rates Change?
Treasury Bill yields are influenced by conditions in the government securities market.
At each auction, investors submit bids and Bank of Uganda determines the accepted bids and resulting cut-off levels.
Demand for the securities can therefore affect auction outcomes.
This is why a 364-Day Treasury Bill issued at one auction may have a different yield from a 364-Day Treasury Bill issued at another auction.
Investors should therefore check the specific rate, price and maturity relevant to the Treasury Bill they are considering.
How Do Treasury Bill Auctions Work in Uganda?
Bank of Uganda regularly conducts Treasury Bill auctions.
Before an auction, it publishes an invitation containing details such as:
- Securities being offered
- Amount offered
- Auction date
- Settlement date
- Maturity date
- Bid submission deadline
- Competitive and non-competitive bidding requirements
After the auction, Bank of Uganda publishes the results showing the bids received, accepted amounts, cut-off prices and yields.
Competitive Bids
Competitive bidders specify the price or yield at which they are willing to invest.
These bids are primarily relevant to Primary Dealer Banks and larger participants and are subject to the applicable auction rules.
Non-Competitive Bids
Non-competitive bidding provides a route through which smaller investors can participate subject to the terms of the particular auction.
The minimum for non-competitive bids in recent Bank of Uganda Treasury Bill auctions has been UGX 100,000.
Always check the current auction invitation because the applicable terms can change.
What Is the Minimum Amount for Treasury Bills in Uganda?
For non-competitive bids in recent Bank of Uganda Treasury Bill auctions, the minimum has been:
UGX 100,000
This makes Treasury Bills accessible at considerably lower amounts than many people assume.
However, investors should check the terms of the particular auction because minimums and participation requirements are determined by the applicable Bank of Uganda auction rules.
How to Invest in Treasury Bills in Uganda
Treasury Bills are not currently available for investment through Level Africa.
Investors seeking to participate in Treasury Bill auctions can do so through the channels permitted under the applicable Bank of Uganda auction framework, including commercial banks for non-competitive participation.
The general process involves:
1. Check the Upcoming Treasury Bill Auction
Review the Bank of Uganda auction invitation to see the Treasury Bills being offered, their maturities and the submission deadline.
2. Choose a Maturity
Decide whether you are considering a:
- 91-Day Treasury Bill
- 182-Day Treasury Bill
- 364-Day Treasury Bill
Your choice should reflect how long you want the money invested.
3. Submit Your Bid Through the Applicable Channel
Individual investors participating through non-competitive bids can submit their investment through the permitted commercial-bank process, subject to the current auction requirements.
4. Wait for the Auction Results
Bank of Uganda publishes the auction results showing the accepted bids, cut-off prices and yields.
5. Hold Until Maturity
At maturity, the Treasury Bill is redeemed according to its terms.
Do Treasury Bills Pay Interest Every Month?
No.
Treasury Bills do not normally make monthly interest payments.
They are generally purchased at a discount and redeemed at their face value when they mature.
Your return is therefore realised through the difference between the amount paid and the amount received at maturity.
This is different from Treasury Bonds, which generally make coupon payments every six months.
Are Treasury Bills Safe?
Treasury Bills are government securities and are generally considered lower-risk investments compared with many market-based investments.
However, investors should still consider factors such as:
Inflation
If inflation is high relative to your investment return, the purchasing power of your money can be affected.
Reinvestment Risk
When a short-term Treasury Bill matures, the rates available when you want to reinvest may be lower than the rate you previously received.
Liquidity Needs
Your investment period should match when you expect to need the money.
A 364-Day Treasury Bill, for example, may not suit money you expect to need in a few months.
The important question is therefore not simply whether Treasury Bills are safe, but whether their maturity, return and structure fit your goal.
Treasury Bills vs Treasury Bonds in Uganda
Treasury Bills and Treasury Bonds are both government securities, but they serve different investment periods and generate returns differently.
| Treasury Bills | Treasury Bonds | |
|---|---|---|
| Issuer | Government of Uganda | Government of Uganda |
| Investment Period | Shorter term | Longer term |
| Common Maturities | 91, 182 and 364 days | Multiple longer-term maturities |
| Return Structure | Bought at a discount | Coupon payments |
| Regular Coupon Payments | No | Generally every six months |
| Typical Investor Goal | Shorter-term investing | Longer-term income and investing |
| Available Through Level Africa | No | Yes |
The better fit depends on your investment period, liquidity needs and how you want your returns to be generated.
Treasury Bills vs Keeping Money in a Savings Account
Treasury Bills and savings accounts also serve different purposes.
A savings account generally prioritises accessibility. You can usually access your money according to the bank account’s terms.
A Treasury Bill has a defined maturity.
In exchange for committing money for that period, investors earn the return associated with the security.
The right choice therefore depends partly on:
When will you need the money?
and
What return and level of access are you looking for?
Are Treasury Bill Returns Taxed in Uganda?
Tax can affect the amount an investor ultimately receives from a Treasury Bill.
When evaluating returns, distinguish between:
Gross return — the return before applicable taxes.
and
Net return — what remains after applicable taxes and charges.
Tax treatment can depend on applicable rules, so investors should use the prevailing tax requirements when calculating their expected net return.
Looking for Other Ways to Invest?
Treasury Bills are not currently available for investment through Level Africa, but you can explore other investment options depending on what you want your money to achieve.
If You Want Government Securities
You can explore Treasury Bonds available through Level Africa.
Treasury Bonds are longer-term government securities and generally provide coupon payments every six months.
If You Want Shorter-Term Investing and Liquidity
You can compare Unit Trusts, including Money Market Funds available on Level Africa.
Depending on the particular fund, these can provide an alternative for investors prioritising liquidity and shorter investment horizons.
If You Want Structured Income Investments
You can also explore Fixed Income opportunities available through Level Africa.
Rather than choosing purely by headline return, compare the options based on:
- Minimum investment
- Potential return
- Investment period
- Liquidity
- Risk
- How returns are paid
Final Thoughts
Treasury Bills provide a relatively straightforward way to invest in short-term Uganda government securities.
The basic structure is simple:
You invest for 91, 182 or 364 days → You purchase the Treasury Bill at a price below its face value → At maturity, you receive the face value.
But rates change from one auction to another.
Before investing, check the current yield, price, maturity, auction terms and applicable taxes rather than relying on historical figures.
For current rates, see Treasury Bill Rates in Uganda Today
Frequently Asked Questions
What are Treasury Bills in Uganda?
Treasury Bills are short-term government securities issued by the Government of Uganda. They commonly mature after 91, 182 or 364 days.
How do Treasury Bills work?
Treasury Bills are generally bought below their face value and redeemed at face value at maturity. The difference between the purchase price and face value represents the investor’s gross return.
What is the minimum amount to invest in Treasury Bills in Uganda?
Recent Bank of Uganda auction terms have allowed non-competitive participation starting from UGX 100,000. Investors should confirm the requirements of the specific auction.
What are the current Treasury Bill rates in Uganda?
Rates change with each auction. See the latest figures on our Treasury Bill Rates in Uganda Today resource.
How often are Treasury Bill auctions held in Uganda?
Bank of Uganda conducts Treasury Bill auctions regularly according to its government securities issuance calendar.
How do I invest in Treasury Bills in Uganda?
Individual investors can participate through the channels permitted under the Bank of Uganda auction framework, including commercial banks for non-competitive bids.
Can I invest in Treasury Bills through Level Africa?
No. Treasury Bills are not currently available for investment through Level Africa.
You can, however, use Level Africa to explore other investments including Treasury Bonds, Unit Trusts and Fixed Income.
What is the difference between a Treasury Bill and a Treasury Bond?
Treasury Bills are shorter-term government securities generally bought at a discount. Treasury Bonds are longer-term securities that generally make coupon payments every six months.
Do Treasury Bills pay monthly interest?
No. Treasury Bills generally do not pay monthly interest. The investor earns through the difference between the purchase price and the face value received at maturity.
Which Treasury Bill is best?
There is no single maturity that is automatically best. The appropriate choice depends on the current rates, how long you want to invest and when you expect to need your money.
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