Treasury Bills in Uganda: A Simple Guide for First-Time Investors 2025
If you’ve ever heard of treasury bills but weren’t sure how they work, this guide is for you. Treasury bills (T-bills) are one of the safest and most accessible investment options in Uganda. They allow you to lend money to the government for short periods in exchange for a return.
What Are Treasury Bills in Uganda?
A treasury bill is a short-term debt instrument issued by the Government of Uganda through the Bank of Uganda. Unlike bonds, which last for years, treasury bills mature in:
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91 days (3 months)
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182 days (6 months)
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364 days (1 year)
When you buy a treasury bill, you don’t receive regular interest payments like with bonds. Instead, you buy it at a discounted price and get the full face value when it matures. The difference between what you paid and what you receive is your profit.
Example:
If you buy a UGX 1,000,000 treasury bill at UGX 900,000, you’ll receive UGX 1,000,000 at maturity. The UGX 100,000 difference is your return.
How Treasury Bill Auctions Work in Uganda?
Treasury bills are only sold through Bank of Uganda’s bi-weekly auctions. Here’s how it works:
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Auction Announcements – Bank of Uganda publishes auction calls on its website and in newspapers.
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Primary Dealers – Only certain banks (like Stanbic, Standard Chartered, Centenary, Equity, ABSA, etc.) are licensed to submit competitive bids directly to the Bank of Uganda.
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Non-Competitive Bids – Individuals and institutions can place bids through any commercial bank. These are accepted in full at the cut-off price.
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Minimums –
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Competitive bids (for Primary Dealers only): UGX 200,100,000
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Non-competitive bids (for individuals): UGX 100,000
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Why Treasury Bills Matter
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Safe Investment – Backed by the Government of Uganda.
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Short-Term Commitment – Ideal if you don’t want to lock money away for years.
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Predictable Returns – You know your profit upfront at purchase.
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Accessible – You can start with UGX 100,000 through a commercial bank.
Treasury Bills vs Bonds in Uganda
| Feature | Treasury Bills | Treasury Bonds |
|---|---|---|
| Tenor | Short-term (91, 182, 364 days) | Long-term (2–20+ years) |
| Returns | Discounted price → Full value at maturity | Regular coupon interest + principal at maturity |
| Who Sells | Bank of Uganda via Primary Dealer banks | Available through banks & Level Africa platform |
| Best For | Short-term savers | Long-term investors |
Treasury Bills Interest Rates in Uganda
Rates change depending on demand at each auction. As of 2025:
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91-day treasury bills yield around 10–12% annually.
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182-day treasury bills yield between 12–14%.
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364-day treasury bills can exceed 15%.
Want to stay updated on Treasury Bill auctions and results?
Join the Level Africa Investment Community where we share the latest Bank of Uganda auction dates, interest rates, and insights.
How to Buy Treasury Bills in Uganda
You cannot buy treasury bills through Level Africa. To participate, you need to go through a commercial bank:
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Visit your bank branch and ask about investing in treasury bills.
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Fill out the forms for a non-competitive bid (minimum UGX 100,000).
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Submit before the auction deadline (usually 10 AM on Wednesdays).
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If successful, your money will be debited, and you’ll receive a treasury bill certificate.
Taxes on Treasury Bills in Uganda
Returns are subject to 20% withholding tax, deducted automatically before you receive your profit.
Final Thoughts
Treasury bills are a great option for short-term investors who want safety and predictable returns. While you can only buy them directly through commercial banks, Level Africa provides you with updates, analysis, and advisory services to help you invest with confidence.
Start Now – Create an Account on Level Africa to explore government bonds and other regulated investment opportunities.
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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. Can I buy treasury bills on Level Africa?
No. Treasury bills are issued only through the Bank of Uganda. Level Africa provides education, analysis, and paid investment advisory to help you through the process.
3. How often are treasury bill auctions held?
Every two weeks, according to the Bank of Uganda’s auction calendar.
4. What is the difference between a treasury bill and a bond?
Bills are short-term, discounted securities, while bonds are long-term and pay interest coupons.