September 2023 Bank of Uganda Treasury Bond Auction – What Investors Should Know

This September kicked off with another opportunity for investors to grow their money through safe, government-backed bonds. The Bank of Uganda offered two reopened bonds — one mid-term and one long-term — with attractive interest rates and flexible bidding options. Here’s what was on offer and how you can benefit.

What Bonds Were Offered?

Bank of Uganda reopened the following government treasury bonds on September 6, 2023:

UG12J1301280 – 14.125% Government of Uganda Treasury Bond due 13-Jan-2028 (5-Year Reopening)
UG12K1405378 – 16.000% Government of Uganda Treasury Bond due 14-May-2037 (15-Year Reopening)

Offering Details:

Bond Term	ISIN	Coupon Rate	Maturity Date	Offering Amount	Withholding Tax
5-Year	UG12J1301280	14.125%	13-Jan-2028	UGX 200 billion	20%
15-Year	UG12K1405378	16.000%	14-May-2037	UGX 390 billion	10%

How the Auction Works

Auction Date: Wednesday, September 6, 2023
Settlement Date: Thursday, September 7, 2023 at 12:00 PM
Minimum Bids:
- Competitive: UGX 200.1 million
- Non-Competitive: UGX 100,000
Accepted in Full: Non-competitive bids up to UGX 200 million per tenor
Allotment Price: All successful bids are allocated at the lowest price (highest accepted yield)

These bonds pay interest every 6 months, creating a predictable stream of income.

Why This Matters

The 5-year bond is suitable for medium-term goals like tuition, home building, or a business launch.
The 15-year bond is ideal for investors planning long-term — retirement, children’s university, or wealth preservation.
With interest rates above 14% and 16%, these bonds offer higher returns than many savings accounts or fixed deposits.
Anyone can participate — non-competitive bids start from as low as UGX 100,000.

How to Invest with Level Africa

Level Africa lets you invest in government bonds from your phone — no paperwork, no broker, no stress.

Here’s how 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

With high interest rates and full government backing, the September 2023 bond auction is another smart opportunity to grow your investments safely. Whether you’re new to bonds or ready to build long-term wealth, now’s the time to start.

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.