May 2022 Bank Of Uganda Treasury Bond Auction – 2-Year and 10-Year Bonds Reopened

In May 2022, Bank of Uganda reopened two treasury bonds — a short-term 2-year and a long-term 10-year — giving Ugandans another opportunity to earn fixed interest income through low-risk government securities. Here’s a breakdown of what was offered and how to invest.

What Bonds Were Offered?

On Wednesday, May 18, 2022, the following bonds were auctioned:

UG12F0709234 – 10.000% Government of Uganda Treasury Bond due 07-Sep-2023 (2-Year Reopening)
UG12K0403325 – 16.375% Government of Uganda Treasury Bond due 04-Mar-2032 (10-Year Reopening)

Bond Term	ISIN	Coupon Rate	Maturity Date	Offering Amount	Withholding Tax
2-Year	UG12F0709234	10.000%	07-Sep-2023	UGX 150 billion	20%
10-Year	UG12K0403325	16.375%	04-Mar-2032	UGX 250 billion	10%

These are reopening bonds, meaning they were previously issued and are being offered again for new investment.

Auction Details

Auction Date: Wednesday, May 18, 2022
Settlement Date: Thursday, May 19, 2022 (by 12:00 PM)
Minimum Investment:
- UGX 100,000 for non-competitive bids
- UGX 200.1 million for competitive bids via Primary Dealer Banks
Bidding Deadline: 10:00 AM on auction day
Coupon Payments: Interest paid every 6 months
Allotment Method: All successful bids (competitive and non-competitive) are awarded at the auction’s cut-off price

Why These Bonds Matter

The 2-year bond is perfect for short-term saving goals like school fees, home improvements, or capital for a project.
The 10-year bond offers a strong return for long-term goals like real estate, retirement, or wealth building.
Bonds provide predictable income, with interest paid twice a year and full principal returned at maturity.
Accessible to anyone with UGX 100,000 or more, these are low-risk investments backed by the government.

How to Invest with Level Africa

You don’t need a broker or paperwork to invest in bonds. With Level Africa, it’s fully digital.

Steps to get started:

Create an account on Level Africa
Complete KYC with your ID or passport
Go to Treasury Bonds under Products
Choose bonds listed (including reopened 3Y or 20Y bonds)
Fund your Level wallet
Buy bonds — instantly, if marked “Available”
Track interest and returns from your dashboard

Final Thoughts

The May 2022 bond auction offered both short- and long-term investment opportunities for Ugandans looking to grow their money safely. Whether you’re investing for 2 or 10 years, government bonds provide reliable returns and security.

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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.