How to Buy Treasury Bonds in Tanzania: Bank of Tanzania Auctions

If you want income you can count on twice a year, a Tanzanian government bond is worth a look. You can buy one with TZS 1,000,000 through any licensed bank or broker, and it pays interest every six months until it matures.

Recent bonds have paid from 9.50% on the 2-year bond up to 13.25% on the 25-year. Bonds of five years or longer pay that interest tax-free. Here's how to buy, as of October 2026.

Quick facts: Tanzania Treasury bonds in October 2026

Treasury bonds vs Treasury bills: what's the difference?

A Treasury bond is a loan to the Government of Tanzania that runs for more than a year, currently 2 to 25 years, and pays a fixed coupon every six months. A Treasury bill is the short-term version: it matures in 35, 91, 182 or 364 days and is sold at a discount instead of paying a coupon. If you want income you can plan around for years, a bond fits. If you're parking money for a few months, a bill is the better tool.

Both are investing options open to anyone banking in Tanzania, and both are sold the same way: through a Bank of Tanzania auction.

How much do you need to buy a Treasury bond in Tanzania?

The minimum bid for a Treasury bond is TZS 1,000,000 face value, and above that you bid in steps of TZS 100,000: TZS 1,100,000, TZS 1,200,000 and so on. This was the minimum in every 2026 auction notice we checked, including the 10-year bond auctioned on 22 July 2026.

If TZS 1 million is more than you want to tie up in one instrument, look at UTT AMIS unit trusts, which let you buy into Tanzania's government-backed funds from much smaller amounts via M-Pesa or Airtel Money, including a fund that itself invests mainly in Treasury bills and bonds.

Longer bonds suit money you're setting aside for a goal years out rather than months, such as the construction cost of a house: the fixed coupon and the tax-free status on 5-year-plus bonds beat watching the same cash sit idle in a current account while material prices keep climbing.

How to buy a Treasury bond through a Bank of Tanzania auction

1. Get your TIN and NIDA number ready. Your Central Depository Participant will ask for a TIN certificate and a valid ID: a NIDA number for citizens, a passport for everyone else. If you don't have a TIN yet, get one from TRA first. If you're not sure your NIDA registration is complete, check it before you start.
2. Choose a Central Depository Participant (CDP). A CDP is any bank licensed under the Banking and Financial Institutions Act or any broker-dealer licensed by the Capital Markets and Securities Authority, under Bank of Tanzania's rules for the Treasury bond market. CRDB Bank, NMB, Stanbic, KCB Tanzania, Equity Bank, Absa and Standard Chartered are all registered CDPs, alongside several licensed stockbrokers.
3. Open a CDS Client Securities account. You can't bid without one. Your CDP will ask you to complete an account-opening form and bring a copy of your TIN certificate, a copy of your ID and a passport-size photo.
4. Watch for the auction notice. BOT publishes a notice about a week before each auction on its website and through CDPs, naming the bond's tenure, coupon, and the day bids close.
5. Submit your bid through your CDP. Bids close at 11:00 a.m. on the auction date. If you don't want to guess a price, ask for a non-competitive bid. BOT fills these at the auction's average price, and the limit is TZS 500,000,000 per auction, which is plenty for almost any individual investor.
6. Pay by the next business day. Settlement is T+1: for the 10-year bond auctioned on 22 July 2026, bidding closed on 22 July and successful bidders paid by 23 July. Your CDP will give you a bid code to reference the payment.
7. Get paid every six months, then at maturity. Coupon interest lands in your bank account on the two dates fixed when the bond was issued; at maturity you get the face value back plus the final coupon.

Miss a payment after winning a bid and you're locked out of the next auctions for a minimum of 30 days, so don't bid more than you can settle by T+1.

What return can you expect right now?

Rates move every auction because BOT prices bonds through competitive bidding rather than a fixed table, so treat any coupon as a snapshot, not a forecast. Here's what recent 2026 auctions paid:

Longer bonds, 20-year and 25-year, are auctioned less often and have recently priced a notch above the 15-year. Check the current notice on bot.go.tz before you bid on those two, since the gap between tenures narrows and widens with each auction.

If you want to see what a coupon like this turns into if you reinvest it rather than spend it, run the numbers through our compound interest calculator.

Do you pay tax on Treasury bond interest in Tanzania?

It depends on the bond's length. Interest on the 2-year bond has 10% withholding tax taken off before you're paid. Interest on 5, 7, 10, 15, 20 and 25-year bonds is exempt from withholding tax. That applied in every 2026 auction notice we checked, and matches BOT's own guidelines. If you've got a separate tax exemption certificate from TRA, your CDP sends a copy to BOT. Most individual investors in the exempt bonds don't need to do anything, because the exemption is attached to the bond itself.

Can foreigners and the diaspora buy Tanzania Treasury bonds?

Yes, and the rules have just opened up. Until early August 2026, only residents of the East African Community (EAC), the Southern African Development Community (SADC) and the Tanzanian diaspora could bid. On 6 August 2026, the Bank of Tanzania announced that the Foreign Exchange (Amendment) Regulations, 2026 (Government Notice No. 206 of 2026, published 17 July 2026) now let non-residents of any nationality invest in Tanzanian Treasury bills and bonds. You still go through an approved CDP, and the usual minimums and steps apply. BOT's notice sets no special minimum for foreign bidders beyond the standard TZS 1,000,000 for bonds.

Can you sell a Treasury bond before it matures?

Yes. Once issued, Treasury bonds are listed on the Dar es Salaam Stock Exchange, and trading in steps of TZS 100,000 usually starts within a few days of the auction: trading in the 22 July 2026 10-year bond began on 24 July 2026. To sell, you go through a registered broker rather than your CDP. The price depends on market rates that day, so it can be above or below what you paid.

Treasury bonds vs UTT AMIS unit trusts: which should you pick?

A Treasury bond suits money you can lock away for years in return for a fixed, government-backed interest rate, as long as you're happy to use a broker if you need to sell early. UTT AMIS unit trusts suit money you might need sooner: you can pay in and withdraw by M-Pesa or Airtel Money without a CDP or the DSE, though the return isn't fixed and moves with the fund's investments (several of which are Treasury bills and bonds). If it's your first time, choose based on how soon you might need the money, not which pays more this month. There's a third option too: buying company shares on the DSE through the same kind of broker account. See our guide on how to buy DSE shares.

Mistakes to avoid when buying bonds

• Locking in a rate for decades. A 20-year or 25-year bond fixes your coupon for a very long time. If market rates climb after you buy, you're stuck below market until you sell on the DSE, usually at a discount to face value.
• Settlement is fast and non-negotiable. You pay by the next business day after the auction (T+1). Missing it gets you barred from the next round of auctions for at least 30 days.
• The 2-year bond is taxed, the rest usually aren't. Compare the after-tax return on a 2-year bond against the headline rate on a 10-year or 15-year bond before assuming the longer bond pays less.
• Secondary-market prices move. If you need to sell before maturity, the price on the DSE reflects current market yields on the day, not what you originally paid.
• Rates aren't fixed across auctions. BOT sets the coupon at each auction through competitive bidding, so this month's 10-year rate can differ from the next one. Check the live notice before you commit.

Frequently asked questions

What is the minimum amount to buy a Treasury bond in Tanzania?

TZS 1,000,000 face value, and bids above that must be in multiples of TZS 100,000. This minimum has applied across every 2026 Bank of Tanzania bond auction checked for this guide.

Which banks can I use to buy a Treasury bond?

Any bank or broker registered by the Bank of Tanzania as a Central Depository Participant (CDP). CRDB Bank, NMB, Stanbic, KCB Tanzania, Equity Bank, Absa and Standard Chartered are among those on BOT's list, alongside several licensed stockbrokers.

Do Treasury bonds in Tanzania pay tax-free interest?

Only the longer ones. Interest on bonds of 5 years or more is exempt from withholding tax; interest on the 2-year bond carries a 10% withholding tax, deducted before you're paid.

Can I buy Tanzania Treasury bonds if I live outside the country?

Yes. Since 6 August 2026, foreign investors of any nationality can buy, in addition to residents of the East African Community, the Southern African Development Community, and the Tanzanian diaspora who could already participate. You still need to go through an approved CDP.

How often does the Bank of Tanzania auction Treasury bonds?

Roughly every two weeks, rotating through the seven lengths: 2, 5, 7, 10, 15, 20 and 25 years. BOT publishes a notice about a week before each auction, on its website and through CDPs.

Can I sell my Treasury bond before it matures?

Yes, on the Dar es Salaam Stock Exchange through a registered broker-dealer, usually from within a few days of the original auction. The price depends on where market yields sit on the day you sell, so it can be above or below what you paid.