How to Buy Treasury Bills and Bonds in Uganda: Minimums, Rates and Tax

You can buy a Ugandan Treasury bill or bond with as little as UGX 100,000. You open an account with any primary dealer bank, place your bid before the auction, and the bank does the rest.

Rates are moving, though. On 14 October 2026, Bank of Uganda raised its main rate to 12%, so yields on new bills are likely to rise. Here's how to buy, and what to expect.

Quick facts

What's the actual difference between a Treasury bill and a Treasury bond?

Both are shilling-denominated debt the Ugandan government sells through Bank of Uganda, and both are treated as the lowest-risk investment available in Uganda because the government backs the repayment.

• Treasury bills run for 91, 182 or 364 days. You buy them below face value and get the full face value back at the end. There's no separate interest payment: your "interest" is the difference between what you paid and what you get back.
• Treasury bonds run from 2 years out to 25 years. They pay a fixed coupon every six months, then return the face value when the bond matures.

If you might need the money back inside a year, a bill is the obvious choice. If you're comfortable locking it away for longer in exchange for a coupon you can live off, a bond does that job.

How to buy Treasury bills or bonds in Uganda, step by step

1. Choose a bank that is a Bank of Uganda primary dealer. Centenary Bank confirms on its own site that it's a registered primary dealer that "transacts directly with Bank of Uganda" for customers (Centenary Bank, checked October 2026). Several other banks have held the same status, but Bank of Uganda reviews the list from time to time, so ask your bank to confirm it still qualifies before you invest.
2. Hold an account at that bank. Your investment funds need to sit there; it's where the bid is funded from and where you're eventually paid.
3. Open a CSD account through the bank, giving your National ID and your URA Taxpayer Identification Number (TIN). If you don't have a TIN yet, getting one online is free and takes about five minutes.
4. Fill in a Treasury Bill or Bond Bid Application form at the bank. Choose your tenor (91, 182 or 364 days for a bill, or 2 to 25 years for a bond) and how much you want to put in.
5. Choose a non-competitive bid, unless you're investing an institutional-sized sum. A non-competitive bid is accepted automatically at whatever average rate the auction clears at, so there's no risk of your bid being rejected for naming too high a rate. Competitive bidding, where you name your own rate, needs a far bigger minimum and is really a tool for banks and fund managers, not individual savers.
6. Submit before the bank's cut-off, usually a few working days before the Bank of Uganda auction. Ask your bank for its exact deadline.
7. Get paid. A bill pays out its full face value on the maturity date. A bond pays its coupon into your account every six months, then the face value when it matures.

How much do you need to start?

UGX 100,000. Centenary Bank, a registered Bank of Uganda primary dealer, confirms this is both the minimum investment and the standard unit (Centenary Bank). That's the non-competitive route almost every individual uses, for bills and bonds alike. Competitive bids need far more money and are mainly for institutions bidding their own rate.

What are Treasury bill and bond rates in Uganda right now?

Bank of Uganda's own statistical release shows the primary-market yield sliding for most of 2026:

Source: Bank of Uganda, Summary of Macroeconomic Indicators, May 2026. This is the latest dated figure from Bank of Uganda that we could confirm.

For one specific auction: on 19 November 2025 (Auction No. 1218), the 91-day bill cleared at a 10.705% discount rate. That's a 10.999% money-market yield, or 11.461% as a compound yearly rate (Eagle Online). Three different numbers for the same bill, so check which one a rate quote uses before you compare it with anything else.

Bonds auctioned around the same period cleared at 16.000% for the 3-year, 17.150% for the 10-year and 17.950% for the 20-year, reopened on 3 September 2025 (Eagle Online.

Here's what those numbers can't show: on 14 October 2026, at an emergency meeting, Bank of Uganda raised its Central Bank Rate by 225 basis points, from 9.75% to 12%. It was the biggest single rise since October 2011. The bank was defending a shilling that has lost around 12% of its value this year, and acting before inflation, forecast to rise to 7–7.5% from 4.6% in September (Nairametrics). Treasury yields follow the Central Bank Rate, so expect the next few auctions to clear well above the rates in the table. Bank of Uganda's website had just been rebuilt and wasn't yet showing post-rise auction results, so ask your bank for the latest rate, or check bou.or.ug, before you bid.

What tax will you pay on the interest?

Interest from Ugandan government securities is a final withholding tax: your bank deducts it automatically before the money reaches you, and you don't declare it again or owe anything further on it (Uganda Revenue Authority:

• 20% withholding tax on government securities of 10 years or less: every Treasury bill, plus most Treasury bonds (2, 3 and 5-year).
• 10% withholding tax on government securities of more than 10 years: the 10, 15, 20 and 25-year bonds.

So UGX 100,000 interest on a 182-day bill leaves you UGX 80,000 after tax, while the same UGX 100,000 on a 15-year bond costs you only UGX 10,000. If an older guide says 15%, that was the rate before July 2012. It's been 20% on short-term paper for over a decade, and the rate on bonds of more than 10 years was cut to 10% in the 2019/20 budget.

Can you sell before maturity?

Yes, in theory. Government securities trade on the Uganda Securities Exchange (USE): a licensed stockbroker lists your security for sale, and it's matched with a buyer (Uganda Securities Exchange). In practice, most of this trading is between banks and big institutions, so don't count on selling quickly at a fair price. Ask your bank or a stockbroker what your bill or bond would fetch before you plan an early exit.

Mistakes to avoid when buying government securities

• Don't buy a "ready" CSD account from a reseller. Apply directly at a bank with your own ID and TIN. An account in someone else's name is a risk, not a shortcut.
• Fees aren't standardised or published anywhere we could find. Ask your bank upfront what, if anything, it charges to buy or hold on your behalf.
• The primary dealer list changes. Confirm your bank currently holds the status rather than relying on an old list you found online.
• Rates move every auction. A figure that was accurate in April won't necessarily hold by the time you bid, especially after a Central Bank Rate move this size.
• Know which "rate" you're looking at. Discount rate, money-market yield and effective yearly yield are three different numbers from the same auction. Don't compare a discount rate on one bill with an effective yield on another and think you've found a better deal.

If you want to see how Treasury bills and bonds stack up against unit trusts, SACCOs and shares before you commit, our roundup of investment options in Uganda compares all of them side by side. If fortnightly auctions and CSD paperwork sound like more admin than you want, a unit trust invests in largely the same T-bills and bonds on your behalf, for a lower minimum and none of the bidding. And if you'd rather park money somewhere with zero auction risk at all, NSSF Uganda's Smartlife Flexi savings product is worth comparing too.

Frequently asked questions

Can a Ugandan living abroad buy Treasury bills or bonds?

In principle, yes, through the same CSD account process at a Ugandan bank, though you'll usually need to complete National ID verification in person or through your bank's diaspora banking channel where one exists. Ask your bank's diaspora desk directly, since this varies by institution.

Is a Treasury bond safer than a fixed deposit?

Both are considered low risk in normal times. The real difference is liquidity: a fixed deposit is usually easier to break early with your bank than a bond is to sell on, so match whichever one you pick to how soon you might need the cash.

What happens if you need your money back before a bill matures?

You can try to sell it through a stockbroker on the Uganda Securities Exchange, but the price depends on how rates have moved since you bought and on finding a buyer. It isn't a guaranteed same-day cash-out like breaking a fixed deposit usually is.

Do you pay tax on Treasury bill interest if you're not a Ugandan resident?

The withholding tax applies to interest "paid to any person," so it's deducted regardless of your residency status before you're paid. Whether you owe anything further in your own country of residence depends on that country's tax rules and any double-taxation treaty with Uganda, so check with a tax adviser there.

Why do Treasury bill rates in Uganda keep changing?

Because every bill and bond is sold at auction, not at a fixed price. Bank of Uganda invites bids every few weeks, and the rate depends on how much the government wants to borrow that round and how hard banks and investors compete. That's why rates moved from around 11% in January 2026 towards the 12% Central Bank Rate by October.

Can you buy Treasury bills with mobile money in Uganda?

Not that we could find any evidence of. Unlike Kenya's M-Akiba bond, which was built around mobile-money purchase, Uganda's Treasury bills and bonds go through a bank's CSD account process, not a phone app or USSD code.