Investor interest remained strong, with total bids reaching UGX 1.4 trillion against UGX 990 billion offered.

Bonds Offered and Results at a Glance

What These Results Mean

1. The Bonds Offered

The Bank reopened three existing bonds:

• 3-Year bond (UG12G0607287) paying a 15.550% coupon, maturing July 2028

• 10-Year bond (UG12K0811352) paying a 16.250% coupon, maturing November 2035

• 20-Year bond (UG12L1806433) paying a 15.000% coupon, maturing June 2043

Reopening allows both new and existing investors to buy into bonds already in circulation, improving liquidity in Uganda’s bond market.

2. Cut-off Yield Explained

The cut-off yield is the final accepted rate in the auction. It determines how much return investors will earn.
Think of it as the winning interest rate after all bids have been reviewed.

For instance, a bond closing at 16 percent means investors who bid at or below that rate will earn that return until the bond matures.

3. Amount Raised

Although UGX 990 billion was offered, the Bank accepted UGX 1.12 trillion, reflecting strong investor confidence and a competitive bidding environment.

4. Investor Demand (Bid-to-Cover Ratio)

The Bid-to-Cover Ratio measures how many times total bids exceeded the amount offered:

• 3-Year: 1.907

• 10-Year: 1.211

• 20-Year: 1.192

Ratios above 1.0 show oversubscription, which means government bonds continue to attract strong demand from both institutional and individual investors.

What an Investor Could Earn

When you invest in a Treasury Bond, you earn interest every six months until the bond matures, and your full principal is returned at the end of the term.
It is a predictable way to grow your money while preserving capital.

However, investors should note that interest earned on government securities is subject to Withholding Tax (WHT).

Withholding tax on Bank of Uganda bonds depends on the bond’s maturity.
Shorter-term bonds (under 10 years) typically attract a 20 percent withholding tax on interest payments, while longer-term bonds (10 years and above) are subject to a 10 percent withholding tax.
This tax is automatically deducted before you receive your interest, so there is no extra filing required on your part.

Even after tax, Treasury Bonds remain one of the most stable and rewarding investment options available, offering consistent income backed by the Government of Uganda.

How to Invest in Treasury Bonds Through Primary Dealers (PDs)

For investors who prefer the traditional route, Treasury Bonds are available through Primary Dealer (PD) banks licensed by the Bank of Uganda.

Step-by-Step Guide

1. Choose a Primary Dealer Bank
   Select one of the licensed banks: Absa, Centenary, Citi, DFCU, Equity, Housing Finance, Stanbic, or Standard Chartered.

2. Open an Investment Account
   If you do not already bank with them, you may need to open one. The PD will also help you create a Central Securities Depository (CSD) account at Bank of Uganda.

3. Place Your Bid Through the Bank
   Tell your bank how much you want to invest and in which bond maturity (2-year, 5-year, 10-year, etc.). The bank will submit your bid on your behalf.

4. Meet the Minimum Requirement
   The smallest investment allowed is UGX 100,000, though some PDs may have higher internal minimums.

5. Settlement
   If your bid is successful, your bank will debit your account on settlement day, which in this case is October 30, 2025, for the committed amount.

6. Earning Returns
   You will receive interest every six months directly to your bank account and get your full principal back at maturity.

How to Invest in Treasury Bonds Through Level Africa

It is now easier than ever to invest in bonds in Uganda.
With Level Africa, everything is done online, securely, and in minutes.

Steps to Get Started

1. Create an Account on Level Africa
   Visit Level Africa to register.

2. Upload Your National ID or Passport
   Complete your KYC (Know Your Customer) verification.

3. Deposit Money into Your Level Africa Wallet
   Fund your account using mobile money or bank transfer.

4. Choose a Bond from the Treasury Bonds Section
   Browse available bonds and maturities.

5. Place Your Order
   Bonds marked “Available” can be bought instantly.
   For upcoming auctions, place your order at least three days before the auction date to give your investment enough time to be processed.

6. Track Your Returns
   Monitor your investments and interest payments directly from your Level Africa dashboard.

Note: A one-time UGX 25,000 fee applies to process your bid.
If you missed this auction, you can still prepare for the next one by completing your KYC and funding your wallet early.

Start Now – Create an Account on Level Africa!

Final Thoughts

The October 2025 auction reaffirms the resilience of Uganda’s bond market and the growing confidence of investors in fixed-income assets.
With yields between 16 and 18 percent, Treasury Bonds remain one of the most reliable ways to build long-term wealth.

Whether you prefer investing through your Primary Dealer bank or directly via Level Africa, the goal is the same: to grow your money safely and consistently while earning competitive returns.

Ready to Invest?

Join our community of like-minded investors building wealth with Level Africa.

Stay updated by following our WhatsApp channel and joining our Investor WhatsApp Community.

We’ll walk with you every step of the way.

FAQs – Treasury Bonds in Uganda

What are treasury bonds?
They are long-term loans you give to the government in exchange for fixed interest.

How often is interest paid?
Every 6 months directly to your Level Africa wallet.

What’s the minimum investment?
UGX 100,000 for non-competitive bids on Level Africa.

Is the interest taxed?
Yes. Withholding tax is 10% or 20%, depending on the bond.

Can I sell my bond before maturity?
Yes, on the secondary market — but prices may vary.

How do I know which bond to pick?
Start with your goal: short-term = 2-year, medium-term = 5-year, long-term = 15-year+

The post October 2025 Uganda Treasury Bond Auction Results – Strong Investor Demand Across All Terms appeared first on Level Africa.

Treasury Bills on Offer

In this auction (Issue No. 1216), the Government is offering a total of UGX 355 billion across three maturities:

• 91-Day Treasury Bill (UG11B2201264) – UGX 25 billion

• 182-Day Treasury Bill (UG11C2304264) – UGX 75 billion

• 364-Day Treasury Bill (UG11E2210269) – UGX 255 billion

Key Auction Dates

• Auction Date: Wednesday, 22 October 2025

• Settlement Date: Thursday, 23 October 2025

• Maturity Dates:

  • 91-Day → 22 January 2026

  • 182-Day → 23 April 2026

  • 364-Day → 22 October 2026

How to Participate

• Minimum Investment

  • Non-Competitive Bids (via any commercial bank): UGX 100,000 (in multiples)

  • Competitive Bids (Primary Dealers only): UGX 200,100,000

• Submission Deadline
  All bids must reach the Bank of Uganda by 10:00 AM on Wednesday, 22 October 2025 through the Central Securities Depository (CSD).

• Primary Dealer Banks
  ABSA Bank, Citi Bank, Centenary Bank, DFCU Bank, Equity Bank, Housing Finance Bank, Stanbic Bank, and Standard Chartered Bank.

How the Auction Works

• Competitive Bids – Placed by Primary Dealers, quoting a specific price/yield.

• Non-Competitive Bids – For individuals and institutions; accepted at the auction’s cut-off price.

• All successful bidders receive allocations at the same cut-off yield.

Why This Auction Matters

Treasury Bills remain one of the safest ways to invest in Uganda, backed by the Government. They offer predictable returns and short maturities (3 months to 1 year) for investors seeking low-risk options.

👉 Want to stay updated on auction dates and results?

• Join our WhatsApp Group

• Follow our WhatsApp Channel

Final Thoughts

The October 2025 Treasury Bills Auction gives investors another chance to earn secure returns with as little as UGX 100,000. Whether you choose the 91-, 182-, or 364-day option, this auction is an opportunity to grow your money with government-backed stability.

FAQs

1. What is the minimum amount to invest in this auction?
UGX 100,000 for non-competitive bids through commercial banks.

2. When do these treasury bills mature?
Between January and October 2026, depending on the tenor.

3. Who can buy treasury bills?
Individuals and institutions through any commercial bank.

4. How are rates determined?
By auction bids; the cut-off yield sets the return for non-competitive bidders.

5. How often are treasury bill auctions held?
Every two weeks, according to the Bank of Uganda auction calendar.

The post October 2025 Treasury Bills Auction – Bank of Uganda Invitation (Issue No. 1216) appeared first on Level Africa.

• 3-Year Bond (UG12J1301280) – 14.125% maturing 13-Jan-2028

• 10-Year Bond (UG12K2206346) – 14.250% maturing 22-Jun-2034

• 20-Year Bond (UG12L1806433) – 15.000% maturing 18-Jun-2043

If you’re planning to grow your investments through stable, government-backed assets, here’s what you need to know.

What Does “Re-opening” Mean?

These are not new bonds. They’ve been offered before, and now the government is looking to raise more money by offering additional units of the same bonds. If you invest, you’ll be joining an existing group of investors but you’ll still earn the same coupon interest based on your purchase price.

What These Bonds Offer You

3-Year Bond – Short-Term Commitment

• Ideal if you’re planning for expenses in the next 2–3 years.

• Great for school fees, weddings, or land deposits.

• Pays interest every 6 months.

10-Year Bond – Medium-Term Planning

• Good for business expansion, real estate goals, or your children’s secondary or university education.

• More interest than shorter bonds, with regular coupon payments.

20-Year Bond – Long-Term Wealth

• Designed for retirement planning, legacy investments, or long-term wealth preservation.

• Highest return potential over time.

• Suits those building generational wealth.

Deadline to Participate

To join this auction, you must complete your investment steps before Friday, 25 October 2025.

How to Invest in Treasury Bonds Through Primary Dealers (PDs)

1. Choose a Primary Dealer Bank
   Select one of the licensed banks: Absa, Centenary, Citi, DFCU, Equity, Housing Finance, Stanbic, or Standard Chartered.

2. Open an Investment Account
   If you don’t already bank with them, you may need to open an account. They’ll also help you open a CSD (Central Securities Depository) account at the Bank of Uganda in your name.

3. Place Your Bid Through the Bank
   Tell your bank how much you want to invest and in which bond maturity (2-year, 5-year, 15-year, etc.). They will submit the bid on your behalf at the auction.

4. Meet the Minimum Requirement
   The smallest investment allowed is UGX 100,000. Your PD will guide you if they set higher internal minimums.

5. Settlement
   If your bid is successful, your bank (the PD) will debit your account on settlement day (in this case, October 2, 2025) for the committed amount.

6. Earning Returns
   You’ll receive interest every 6 months directly into your bank account, and the full principal at maturity.

How to Invest in Treasury Bonds Through Level Africa

It’s now easier than ever to invest in bonds in Uganda. With Level Africa, everything is done online, securely, and in minutes.

Steps to Get Started:

1. Create an Account on Level Africa

2. Upload your National ID or Passport to complete KYC

3. Deposit money into your Level Africa wallet

4. Choose a bond from the Treasury Bonds section

5. Place your order

6. Bonds marked “Available” can be bought instantly

7. For upcoming auctions, place your order before the deadline

8. Track your returns right from your dashboard

Note: To participate in this auction, complete your KYC and fund your wallet before 25 October 2025.
A one-time UGX 25,000 fee applies to process your bid.

What Happens After You Invest?

Once the auction takes place on 29 October 2025, Bank of Uganda will decide the cut-off yields for each bond based on demand.

If your bid is successful:

• You’ll begin earning interest (coupon payments every 6 months)

• You can track your bond on your Level Africa dashboard

• You’ll get your capital back when the bond matures

Final Thoughts

This is a great opportunity for Ugandans looking for a safe, low-risk, and consistent way to grow their money.

Whether you’re planning for a short-term goal or thinking long-term, this auction gives you multiple options. And with Level Africa, the process is simple, fast, and fully licensed.

Ready to Invest?

Join our community of like-minded investors building wealth with Level Africa.

Stay updated by following our WhatsApp channel and joining our Investor WhatsApp Community.

We’ll walk with you every step of the way.

FAQs – Treasury Bonds in Uganda

What are treasury bonds?
They are long-term loans you give to the government in exchange for fixed interest.

How often is interest paid?
Every 6 months directly to your Level Africa wallet.

What’s the minimum investment?
UGX 100,000 for non-competitive bids on Level Africa.

Is the interest taxed?
Yes. Withholding tax is 10% or 20%, depending on the bond.

Can I sell my bond before maturity?
Yes, on the secondary market — but prices may vary.

How do I know which bond to pick?
Start with your goal: short-term = 2-year, medium-term = 5-year, long-term = 15-year+

The post October 2025 Uganda Treasury Bond Auction: 3, 10 & 20-Year Bonds Now Open appeared first on Level Africa.

If you’re new to investing in bonds, or just tracking Uganda’s economic outlook, here’s what the numbers mean and how you can take advantage.

What Bonds Were Reopened and at What Rates?

Cut-off yield = The interest rate you lock in if your bid is successful during the auction. It’s the real return you’ll earn annually on your investment.

What These Results Tell Us

• Strong demand for long-term bonds: The 15-year bond attracted massive attention — over UGX 2.4 trillion was raised from this one bond alone. It shows Ugandans are thinking long term and prioritizing wealth preservation.

• Higher returns for longer terms: The longer you commit your money, the higher the interest rate. From 15.75% for 2 years to 17.65% for 15 years, the trend is clear.

• Government is raising serious capital: Over UGX 2.7 trillion was raised across the three bonds — an indication of confidence in the safety and returns of government debt.

Real-Life Example – What You Could Have Earned

Let’s say you invested UGX 1,000,000 in the 5-year bond at 16.20%:

• You’d earn UGX 162,000 per year in interest paid out in two parts every 6 months.

• Over 5 years, you’d collect UGX 810,000 in interest.

• At maturity, you get back your original UGX 1,000,000.

All this with minimal risk — the government guarantees to pay you.

How to Invest in Treasury Bonds Through Primary Dealers (PDs)

1. Choose a Primary Dealer Bank
   Select one of the licensed banks: Absa, Centenary, Citi, DFCU, Equity, Housing Finance, Stanbic, or Standard Chartered.

2. Open an Investment Account
   If you don’t already bank with them, you may need to open an account. They’ll also help you open a CSD (Central Securities Depository) account at the Bank of Uganda in your name.

3. Place Your Bid Through the Bank
   Tell your bank how much you want to invest and in which bond maturity (2-year, 5-year, 15-year, etc.). They will submit the bid on your behalf at the auction.

4. Meet the Minimum Requirement
   The smallest investment allowed is UGX 100,000. Your PD will guide you if they set higher internal minimums.

5. Settlement
   If your bid is successful, your bank (the PD) will debit your account on settlement day (in this case, October 2, 2025) for the committed amount.

6. Earning Returns
   You’ll receive interest every 6 months directly into your bank account, and the full principal at maturity.

How to Invest in Treasury Bonds Through Level Africa

It’s now easier than ever to invest in bonds in Uganda. With Level Africa, everything is done online, securely, and in minutes.

Steps to Get Started:

1. Create an Account on Level Africa

2. Upload your National ID or Passport to complete KYC

3. Deposit money into your Level Africa wallet

4. Choose a bond from the Treasury Bonds section

5. Place your order

   • Bonds marked “Available” can be bought instantly

   • For auctions, place your order before the deadline

6. Track your returns right from your dashboard

Note: This particular auction has already closed. But you can prepare early for the next one — complete KYC, fund your wallet, and you’ll be ready when the next invitation is announced.

Final Thoughts

The October auction reminds us of something important: wealth building is a long game. Whether you’re saving for your child’s education, retirement, or a business goal — Treasury Bonds are a solid way to grow your money safely.

And now, thanks to platforms like Level Africa, you don’t need to go through brokers or line up at banks to get started.

Start Now – Create an Account on Level Africa!

Join our community of like-minded investors building wealth with Level Africa.

Stay updated by following our WhatsApp channel and joining our Investor WhatsApp Community.

We’ll walk with you every step of the way.

FAQs – Treasury Bonds in Uganda

What are treasury bonds?
They are long-term loans you give to the government in exchange for fixed interest.

How often is interest paid?
Every 6 months directly to your Level Africa wallet.

What’s the minimum investment?
UGX 100,000 for non-competitive bids on Level Africa.

Is the interest taxed?
Yes. Withholding tax is 10% or 20%, depending on the bond.

Can I sell my bond before maturity?
Yes, on the secondary market — but prices may vary.

How do I know which bond to pick?
Start with your goal: short-term = 2-year, medium-term = 5-year, long-term = 15-year+

The post October 2025 Bank of Uganda Treasury Bond Auction Results & What It Means for You appeared first on Level Africa.

How Treasury Bill Auctions Work

• Auction Day: Every second Wednesday.

• Settlement Day: The next day (Thursday).

• Tenors Available: 91 days, 182 days, 364 days.

• Minimum Investment: UGX 100,000 (non-competitive bids).

• Competitive vs Non-Competitive Bids:

  • Competitive → Placed by Primary Dealer banks.

  • Non-Competitive → For individuals, accepted at the auction cut-off price.

Treasury Bills Auction Dates – July to December 2025

Here are the confirmed auction dates for Treasury Bills in the second half of 2025:

• July 2025: 2, 16, 30

• August 2025: 13, 27

• September 2025: 10, 24

• October 2025: 8, 22

• November 2025: 5, 19

• December 2025: 3, 17, 31

(Settlement is always the next day, Thursday)

Why This Calendar Matters

1. Plan Ahead – You need to submit your application to your bank before the Wednesday 10:00 AM deadline.

2. Time Your Investment – If you want to roll over treasury bills, these dates help you align maturities.

3. Stay Updated – Auction results determine the cut-off yields, which set your actual return.

Stay Updated With Auction Results

Want to know the latest treasury bill rates after each auction? Join the Level Africa community to get updates straight to your phone:

• Join our WhatsApp Group

• Follow our WhatsApp Channel

Final Thoughts

The Bank of Uganda Treasury Bills Auction Calendar 2025 makes it easy for investors to plan and participate in upcoming auctions. With auctions every two weeks, you can choose the right tenor (91, 182, or 364 days) and start building short-term returns safely.

Want to learn how treasury bills work and how to buy them? Check out our guides:

• What Are Treasury Bills in Uganda?

• How to Buy Treasury Bills in Uganda – Step-by-Step

FAQs

1. How often are treasury bill auctions held in Uganda?
Every two weeks, usually on Wednesdays.

2. What is the minimum amount I can invest?
UGX 100,000 through a non-competitive bid.

3. Where can I find auction results?
The Bank of Uganda publishes results after every auction, and we share updates in the Level Africa community.

4. Do the dates ever change?
Yes, the Bank of Uganda can reschedule auctions if needed.

5. Which maturities are available?
91-day, 182-day, and 364-day treasury bills.

The post Bank of Uganda Treasury Bills Auction Calendar 2025 appeared first on Level Africa.

How Treasury Bill Interest Rates Are Set

• Treasury bill rates are determined during Bank of Uganda auctions.

• Investors place bids through commercial banks.

• The final rate (called the cut-off yield) is the highest rate accepted at the auction.

• Non-competitive bids (most individuals) are automatically accepted at this cut-off yield.

This means your return depends on the most recent auction results.

Treasury Bills Interest Rates in Uganda Today

As of September, the latest Bank of Uganda auction delivered the following indicative rates:

• 91-Day Treasury Bill: ~10.3% annualized yield

• 182-Day Treasury Bill: ~13.4% annualized yield

• 364-Day Treasury Bill: ~15.2% annualized yield

For the most recent auction results and upcoming rates:

• Join our WhatsApp Group

• Follow our WhatsApp Channel

Why Treasury Bill Rates Change

1. Government Borrowing Needs – Higher borrowing can push rates up.

2. Investor Demand – If many investors bid, rates may fall.

3. Inflation Trends – Rising inflation usually leads to higher yields.

4. Monetary Policy – Bank of Uganda policy rates also influence T-bill yields.

How to Check Treasury Bill Rates Yourself

• Visit the Bank of Uganda website (auction results are published after every auction).

• Ask your commercial bank for current yields.

• Follow Level Africa updates via our community channels.

Treasury Bill Rates vs Other Investments

Final Thoughts

Treasury bill interest rates in Uganda today remain competitive compared to most savings accounts and fixed deposits. While rates vary at each auction, the 91-day, 182-day, and 364-day options all provide safe, predictable returns for investors.

👉 Want the latest auction rates as soon as they’re released?

• Join our WhatsApp Group

• Follow our WhatsApp Channel

FAQs

1. What is the interest rate on treasury bills in Uganda today?
It changes at every auction, but recent results show 10–16% annualized yields depending on tenor.

2. How often are treasury bill rates updated?
Every two weeks after Bank of Uganda auctions.

3. Which treasury bill pays the most?
The 364-day bill typically offers the highest yield.

4. Can treasury bill rates fall?
Yes. If demand is high or government borrowing needs are low, yields can decrease.

5. How can I get notified of treasury bill rate changes?
Follow auction results on the Bank of Uganda website or join the Level Africa WhatsApp community.

The post Treasury Bills Interest Rates in Uganda Today (Updated 2025) appeared first on Level Africa.

Treasury Bills Are Sold Through Auctions

Treasury bills are issued by the Government of Uganda through the Bank of Uganda. Every two weeks, the Bank holds an auction where investors can buy bills with maturities of 91 days, 182 days, or 364 days.

To participate, you must go through a commercial bank. There are two types of bids:

• Competitive Bids → Placed by Primary Dealer banks (Stanbic, Standard Chartered, ABSA, Centenary, Equity, etc.). These specify the yield they want.

• Non-Competitive Bids → For individuals and institutions. These are accepted in full at the cut-off price.

Minimum Amount for Treasury Bills in Uganda

• Non-Competitive Bids (for individuals):
  Minimum = UGX 100,000, in multiples of 100,000.
  Example: You can invest UGX 100,000, 200,000, 500,000, or more.

• Competitive Bids (for Primary Dealers):
  Minimum = UGX 200,100,000.

For most Ugandan investors, the UGX 100,000 non-competitive bid is the realistic entry point.

Why the UGX 100,000 Minimum Matters

1. Accessibility – Anyone can start small without needing millions.

2. Flexibility – You can increase in multiples of UGX 100,000 depending on your budget.

3. Beginner-Friendly – A low entry point makes treasury bills a great first step into government securities.

Example: Investing the Minimum

If you invest UGX 100,000 in a 364-day treasury bill at a 15% yield:

• Purchase Price ≈ UGX 87,000

• Face Value = UGX 100,000

• Profit = UGX 13,000 (before tax)

• After 20% tax = UGX 10,400 net profit

This may seem small, but it shows how affordable treasury bills are — and how you can scale up over time.

Treasury Bills vs Bonds Minimum Investment

Both securities are accessible, but treasury bills are more popular with small savers because they mature quickly.

Final Thoughts

The minimum amount to buy treasury bills in Uganda is UGX 100,000, making them one of the most accessible investments in the country. Whether you want to test the waters or invest larger sums, treasury bills are a safe, government-backed option.

Stay updated with treasury bill auctions and results:

• Join our WhatsApp Group

• Follow our WhatsApp Channel
  

FAQs

1. What is the minimum amount to buy treasury bills in Uganda?
UGX 100,000 for non-competitive bids.

2. Can I invest less than UGX 100,000?
No. The minimum is UGX 100,000, in multiples of 100,000.

3. Do treasury bonds also have the same minimum?
Yes, UGX 100,000, but bonds are longer-term.

4. How often can I invest in treasury bills?
Every two weeks, during Bank of Uganda auctions.

5. Can I invest in treasury bills using Mobile Money?
Some banks allow funding via Mobile Money. Always check with your bank first.

The post Minimum Amount to Buy Treasury Bills in Uganda appeared first on Level Africa.

Treasury Bills Work on a Discount Basis

Unlike bonds (which pay interest every six months), treasury bills are sold at a discount and redeemed at face value.

• You buy the bill at less than its face value.

• At maturity, you receive the full face value.

• The difference is your profit (return).

Formula:

Step 1: Identify the Face Value

The face value is the amount you will receive at maturity. In Uganda, this is usually in multiples of UGX 100,000.

Example: You apply for a UGX 1,000,000 treasury bill.

Step 2: Apply the Auction Discount Rate

The Bank of Uganda auction determines the discount rate (cut-off yield).

Example: The 364-day auction cut-off yield is 15%.

• Purchase Price = Face Value ÷ (1 + (Yield × Days/365))

• Purchase Price = 1,000,000 ÷ (1 + (0.15 × 364/365))

• Purchase Price ≈ UGX 869,565

Step 3: Calculate Your Profit

• Face Value: UGX 1,000,000

• Purchase Price: UGX 869,565

• Profit = UGX 130,435

Step 4: Deduct Withholding Tax

All treasury bill returns are subject to 20% withholding tax.

• Tax = 20% × 130,435 = UGX 26,087

• Net Profit = UGX 104,348

Step 5: Work Out Your Effective Annual Yield

Even if you invest in a shorter tenor (91 or 182 days), you can calculate the effective annual yield by annualizing the return.

Example: 182-day bill at 12% yield

• Face Value = 1,000,000

• Purchase Price ≈ UGX 941,176

• Profit = UGX 58,824 (before tax)

• Effective Yield ≈ 12% per year

Quick Reference – Typical Treasury Bill Yields

• 91-Day Bill: 10–12% annualized

• 182-Day Bill: 12–14% annualized

• 364-Day Bill: 14–16% annualized

Want to see updated rates and auction results?

• Join our WhatsApp Group

• Follow our WhatsApp Channel

   

Final Thoughts

Calculating treasury bill returns in Uganda comes down to understanding the discount formula and factoring in withholding tax. Once you know the face value, the auction yield, and the tenor, you can work out exactly what you’ll earn.

Treasury bills remain one of the safest and most transparent investments for Ugandans looking for short-term returns.

FAQs

1. How much do I need to invest in treasury bills in Uganda?
The minimum is UGX 100,000 for non-competitive bids.

2. Do I get monthly interest on treasury bills?
No. You buy at a discount and receive the face value at maturity.

3. How is withholding tax applied on treasury bills?
20% of your profit is deducted automatically.

4. How can I quickly calculate treasury bill returns?
Use the formula or a simple calculator: Return = Face Value – Purchase Price.

5. Which treasury bill has the highest return?
The 364-day bill usually offers the highest effective yield.

The post How to Calculate Returns on Treasury Bills in Uganda appeared first on Level Africa.

Step 1: Understand the Basics

Treasury bills are short-term government securities with three maturities:

• 91 days (3 months)

• 182 days (6 months)

• 364 days (1 year)

You don’t receive monthly interest. Instead, you buy the bill at a discounted price and get the full face value at maturity. The difference is your profit.

Step 2: Choose a Commercial Bank

You cannot buy treasury bills directly from the Bank of Uganda as an individual. Instead, you must go through a commercial bank.

• Primary Dealer banks (Stanbic, Standard Chartered, ABSA, Centenary, Equity, etc.) can place bids directly with the Bank of Uganda.

• Other commercial banks can also handle non-competitive bids for their customers.

Step 3: Decide Between Competitive or Non-Competitive Bids

• Competitive Bids: Only Primary Dealer banks can place these. They specify the exact yield they want.

• Non-Competitive Bids: Individuals and institutions use this option. All non-competitive bids are accepted at the auction’s cut-off price.

For most retail investors, non-competitive bids are the way to go.

Step 4: Meet the Minimum Investment

• Non-Competitive Bid Minimum: UGX 100,000 (and in multiples of UGX 100,000).

• Competitive Bid Minimum: UGX 200,100,000 (only for Primary Dealers).

This means you can get started with as little as UGX 100,000 through your bank.

Step 5: Submit Your Application Before the Deadline

• Fill out the treasury bill application form at your bank.

• Submit it along with your funds before the deadline.

• Deadlines are usually Wednesday at 10:00 AM on auction weeks.

Step 6: Wait for the Auction Results

• The Bank of Uganda announces results the same day.

• If your bid is successful, your account will be debited and you’ll receive a treasury bill certificate.

• At maturity, the bank credits your account with the face value of the bill.

Want to stay updated on auction dates and results?

• Join our WhatsApp Group

• Follow our WhatsApp Channel

   

Example: How to Buy a 364-Day Treasury Bill

1. You walk into your bank and request to buy a 364-day treasury bill.

2. You fill in an application for UGX 1,000,000.

3. Suppose the auction cut-off yield is 15%. You will pay about UGX 870,000.

4. After one year, you’ll receive UGX 1,000,000.

5. Your profit (before tax) is UGX 130,000.

Withholding Tax on Treasury Bills

All treasury bill profits are subject to 20% withholding tax. The bank deducts this automatically.

Example:
Profit: UGX 130,000
Tax: UGX 26,000
Net Return: UGX 104,000

Final Thoughts

Buying treasury bills in Uganda is easier than many people think. With as little as UGX 100,000, you can take part in a safe, short-term government-backed investment.

👉 Stay ahead with updates on treasury bill auctions and results:

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FAQs

1. What is the minimum amount to buy treasury bills in Uganda?
UGX 100,000, through non-competitive bids.

2. Can I buy treasury bills directly from the Bank of Uganda?
No. You must go through a commercial bank.

3. How long does it take to receive my money back?
It depends on the maturity: 91, 182, or 364 days.

4. Do treasury bills pay monthly interest?
No. They are bought at a discount and redeemed at face value.

5. How often are treasury bill auctions held?
Every two weeks, according to the Bank of Uganda auction calendar.

The post How to Buy Treasury Bills in Uganda – Step-by-Step appeared first on Level Africa.

Understanding How Treasury Bills Work

Treasury bills are short-term government securities. When you invest in one, you are lending money to the government for a set period. In return, the government promises to pay you back more than you invested.

Unlike treasury bonds (which pay interest every six months), treasury bills work on a discount system:

• You buy a treasury bill at less than its face value.

• At maturity, you receive the full face value.

• The difference is your profit (your return).

Example:
You buy a 364-day treasury bill with a face value of UGX 1,000,000 at UGX 870,000.
At maturity, you receive UGX 1,000,000.
Your profit is UGX 130,000 before tax.

The 91-Day Treasury Bill (3 Months)

• Tenor: 3 months.

• Best for: Investors who want to park money short-term, e.g., for school fees or business cash flow.

• Returns: Typically the lowest yield of the three, but still higher than a savings account.

• Liquidity: Very high, since you get your money back quickly.

The 182-Day Treasury Bill (6 Months)

• Tenor: 6 months.

• Best for: Investors who can wait half a year and want better returns than the 91-day option.

• Returns: Usually higher than 91-day bills, with moderate annual yields.

• Liquidity: Medium — your money is tied up for half a year.

The 364-Day Treasury Bill (1 Year)

• Tenor: 1 year.

• Best for: Investors comfortable locking funds for a full year.

• Returns: Typically the highest yields of all treasury bills, sometimes above 15% effective annual rate.

• Liquidity: Lower than the 91 or 182-day bills, but higher profit potential.

How Auctions Decide Treasury Bill Rates

The Bank of Uganda sells treasury bills through auctions held every two weeks.

• Competitive Bids: Submitted by Primary Dealer banks (like Stanbic, Standard Chartered, ABSA, Centenary, Equity). They specify the rate they want.

• Non-Competitive Bids: Available to individuals and institutions through commercial banks. These are automatically accepted at the auction’s cut-off price.

👉 Want to stay updated on auction dates and results?

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Withholding Tax on Treasury Bills in Uganda

All profits from treasury bills are subject to 20% withholding tax. The tax is automatically deducted before you receive your returns.

Example:
If your profit is UGX 100,000, you’ll receive UGX 80,000 after tax.

Treasury Bills vs Treasury Bonds

Final Thoughts

Treasury bills are a simple, safe, and short-term way to invest your money in Uganda. Whether you choose the 91-day, 182-day, or 364-day option, the main advantage is predictable returns backed by the Government of Uganda.

👉 Don’t miss updates on auction dates, results, and rates:

• Join our WhatsApp Group

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FAQs

1. What is the minimum amount to invest in treasury bills in Uganda?
UGX 100,000, through non-competitive bids at commercial banks.

2. Which treasury bill option has the highest return?
The 364-day bill typically offers the highest yield.

3. How often are treasury bill auctions held in Uganda?
Every two weeks, according to the Bank of Uganda auction calendar.

4. Do treasury bills pay monthly interest?
No. They are bought at a discount and redeemed at full value.

5. Which is better — 91-day or 364-day treasury bills?
It depends on your goal. The 91-day option is more liquid, while the 364-day option usually pays more.

The post How Treasury Bills Work in Uganda – 91, 182, and 364-Day Options appeared first on Level Africa.