Best Safe Investment Options in Uganda (2025)

Looking for where to put your money in 2025 without losing sleep? Whether you’re saving for school fees, a future project, or just want your money to grow securely, here are Uganda’s top safe investment choices explained simply.

What Makes an Investment “Safe”?

A safe investment is one where the risk of losing your money is very low. It is usually backed by the government or a licensed financial institution. Safe investments may not give you the highest returns, but they protect your money while growing it slowly over time.

There is no such thing as zero risk. But options like government bonds, regulated unit trusts, and fixed deposits come close.

Top Safe Investment Options for Ugandans in 2025

1. Treasury Bonds
Issued by the Bank of Uganda. Pays interest every 6 months. Long-term. Backed by the government.

2. Fixed Deposits
Offered by commercial banks. You lock money for 3, 6, or 12 months. Interest is paid at the end.

3. Money Market Funds
These are pooled funds managed by licensed fund managers. Short-term, low risk. You can withdraw anytime with a day’s notice.

4. Unit Trusts – Fixed Income Funds
You invest in a fund that holds treasury bonds and corporate bonds. Diversified and professionally managed.

5. SACCO Shares (Only Regulated Ones)
You buy shares in a savings and credit cooperative. Lower returns but relatively safe if well-managed and licensed.

Real-World Examples of Each Option

If you invest UGX 1,000,000 in each of these for 1 year, here is what you can expect:

1. Treasury Bond
With UGX 1,000,000 in a 2-year treasury bond paying 15%, you earn UGX 150,000 per year, split into two payments of UGX 75,000 every 6 months. At the end of the term, you get back your full UGX 1,000,000. Ideal for long-term planning.

2. Fixed Deposit
At many Ugandan banks, a 1-year fixed deposit may offer 9–10% interest. So, UGX 1,000,000 locked for 12 months at 9.5% earns you UGX 95,000 — paid once at maturity. You can’t access the money until the term ends, and early withdrawal usually means reduced interest.

3. Money Market Fund
Investing UGX 1,000,000 in a money market fund could earn you around UGX 100,000–110,000 depending on the rate and fund manager. You can withdraw within 1 business day. Great for those who want access to their money while still earning.

4. Unit Trust (Fixed Income Fund)
A fixed income unit trust pools your money with others and invests in treasury and corporate bonds. With UGX 1,000,000, expect to earn about UGX 110,000–130,000 in a year. Some fluctuation in value may occur depending on market movements. Withdrawals usually take 2–5 business days.

5. SACCO Shares
Buying UGX 1,000,000 worth of shares in a well-managed, regulated SACCO may earn you UGX 60,000–90,000 annually through dividends. However, returns depend on the SACCO’s performance and dividend policy. You typically receive payments once per year.

Comparing the Options: Returns, Access, and Safety

Investment Option	Approx. Annual Return	Access to Funds	Backed By
Treasury Bond	14–17%	After maturity	Government of Uganda
Fixed Deposit	8–10%	Locked in term	Commercial Bank
Money Market Fund	10–12%	Withdraw anytime	Licensed Fund Manager
Unit Trust – Fixed Income	11–13%	2–5 days	CMA-Regulated Manager
SACCO Shares	6–9%	Annual dividends	Regulated SACCO

Where to Start if You’re New

If you’re new to investing and want a safe way to start, unit trusts, treasury bonds and fixed income products on Level Africa are great entry points.

How to start:

Create a free Level Africa account
Complete KYC by uploading your ID
Fund your account with Mobile Money or bank transfer
Browse treasury bonds and fixed income products
Start investing with as little as UGX 100,000

Frequently Asked Questions

Is my money guaranteed?
If you invest in treasury bonds or a licensed unit trust, your principal is highly protected. There is always some risk, but it’s low.

Can I lose money?
Not likely with government or regulated financial products. But always read the terms before investing.

What if I want to invest UGX 100,000 only?
That’s enough to get started with unit trusts, treasury bonds or fixed income products via Level Africa.

Final Thoughts and Next Steps

Safe investing is not about chasing the highest return — it’s about protecting what you have and growing it steadily.

Start small. Stay consistent. Use licensed platforms like Level Africa.

Start Now – Create an Account on Level Africa

Join our community of like minded investors like yourself today Building Wealth With Level Africa.

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Frequently Asked Questions About Treasury Bonds in Uganda

What are government bonds?

Government bonds are a way to lend money to the Government of Uganda. In return, the government pays you a fixed interest rate every 6 months and gives back your full investment at the end of the bond’s term.

How do treasury bonds work in Uganda?

You buy a bond (e.g. 3, 5, or 10 years), the government pays you interest every 6 months, and you get your full capital back when the bond matures. All bonds are issued and regulated by the Bank of Uganda.

What is the minimum amount to invest in government bonds?

You can start investing with UGX 100,000 using a non-competitive bid. No broker is needed when using platforms like Level Africa.

How can I buy government bonds in Uganda?

You need a Central Depository System (CDS) account or a digital investment platform like Level Africa.
Steps:

Create an account on Level Africa
Upload your National ID or Passport (KYC)
Go to “Treasury Bonds” under Products
Choose a bond that matches your investment goals
Deposit funds into your wallet
Place your order — instantly if marked “Available”
Track your bond and earnings from your dashboard

What are the current treasury bond interest rates in Uganda (2025)?

Rates vary by bond type and auction results. For example:

2-Year bond: around 15.75%
10-Year bond: around 16.25%
20-Year bond: up to 18.50%
All rates are set during each auction by the Bank of Uganda.

Are treasury bonds safe in 2025?

Yes. Treasury bonds are backed by the Government of Uganda and are considered among the safest investments, especially for long-term or retirement goals.

Do government bonds pay interest?

Yes. Interest is called a coupon and is paid out every 6 months. You receive it directly to your wallet or bank account.

Can I sell a bond before it matures?

Yes, bonds are transferable and can be rediscounted if you need to exit early, although the resale price depends on current market rates.

How do interest rates affect bonds?

If new bond rates go up, the value of existing bonds on the market may go down (and vice versa). However, if you hold your bond until maturity, you still get your full investment and all promised interest.

What’s the difference between treasury bonds and treasury bills?

Treasury bonds: Long-term (2–25 years), pay interest every 6 months
Treasury bills: Short-term (91–364 days), sold at a discount and paid back in full at maturity

Can individuals buy Bank of Uganda treasury bonds?

Yes. Both individuals and institutions can invest. Many Ugandans now use Level Africa to access bonds directly with no paperwork.

How often are treasury bonds auctioned in Uganda?

Typically, every 28 days. The auction calendar is published annually by the Bank of Uganda, and Level Africa notifies you ahead of each sale.