Making Money with TREASURY BILLS in KENYA (Safe Investment), by Ken's MoneyMatters on YouTube. 10 min 25 s.
- Video length
- 10 min 25 s
- Time to do it
- 30 minutes
- Difficulty
- Easy
- Steps
- 9
What you need
Steps
Decide how much to invest. Treasury bills in Kenya sell in units of KES 50,000, so you need at least that amount for one bill.
Choose a tenor: 91, 182 or 364 days. Shorter bills give you your money back sooner, longer ones usually pay a higher rate.
Open a CDS account on the Central Bank of Kenya DhowCSD portal, or ask a licensed investment bank to open one for you.
Fill in your details, upload your ID, KRA PIN and passport photo, then wait for the account to be approved.
Log in and check the current auction dates and the rates published for each tenor on the CBK website.
Place your bid. Pick a non-competitive bid to accept the average auction rate, or a competitive bid to name your own discount rate.
Pay the discounted amount before the deadline using the CBK Paybill on M-Pesa or a bank transfer to the stated account.
Check the auction results on the CBK site. If your bid succeeds, the bill is credited to your CDS account.
At maturity the government pays the full face value into your bank account. The difference between what you paid and what you got back is your return.
Tips and common mistakes
Check the weekly CBK rates before you bid, because the rate changes at every auction.
Only use the official CBK portal or a licensed investment bank. Anyone promising above-market Treasury bill returns is a red flag.
Treasury bills lock your money until maturity, so keep a separate emergency fund in a savings account or money market fund.
Selling a bill before maturity means finding a buyer, often at a discount, so plan to hold it to the end.
Questions
What is the minimum amount needed to buy Treasury bills in Kenya?
You need at least KES 50,000 for one bill. Larger amounts must be in multiples of KES 50,000.
Are Treasury bills a safe investment?
They are backed by the government of Kenya, so default risk is very low. You still face inflation and interest rate risk, and early sale can cost you money.
How and when do I get paid?
You buy the bill below its face value and receive the full face value at maturity, so the discount is your interest. Withholding tax is deducted at source, so check the current rate on the CBK site.
This guide was drafted from the video's details and general task knowledge. It has not been checked against the full video. Check the video and relevant product instructions before following a procedure. Report a correction.
