Treasury Bills Explained — A Chama's First Investment
Treasury Bills are government-guaranteed, short-term investments perfect for chamas. Here's how to buy them and what returns to expect.
If your chama has KES 100,000 or more sitting in a savings account, you're leaving money on the table. Treasury Bills (T-Bills) offer 12-16% returns with zero default risk — because the Government of Kenya guarantees them.
What Are Treasury Bills?
T-Bills are short-term government debt instruments. When you buy a T-Bill, you're lending money to the government. They pay you back with interest after 91, 182, or 364 days.
- 91-day T-Bill — approximately 16% annualized return (as of early 2026)
- 182-day T-Bill — approximately 15.5%
- 364-day T-Bill — approximately 15%
These rates fluctuate based on Central Bank of Kenya monetary policy, but they consistently beat savings account rates by 3-5x.
How They Work
T-Bills are sold at a discount. You pay less than the face value and receive the full amount at maturity:
Example: You invest KES 100,000 in a 91-day T-Bill at 16% annualized:
- You pay approximately KES 96,055
- After 91 days, you receive KES 100,000
- Your profit: KES 3,945 (in just 3 months)
Compare that to a savings account paying 3%: you'd earn KES 750 in the same period.
How to Buy T-Bills
Through CBK Directly
- Register on the CBK online auction portal (www.centralbank.go.ke)
- Complete KYC (requires ID, KRA PIN, bank account)
- Submit a bid during the weekly auction (every Thursday)
- If accepted, funds are debited from your bank account
- At maturity, principal + interest is deposited back
Through a Stockbroker
If you'd rather not deal with CBK directly, any licensed stockbroker can buy T-Bills on your behalf for a small commission.
Through a Money Market Fund
Many MMFs invest primarily in T-Bills. You get similar returns without the KES 100,000 minimum.
For Chamas Specifically
T-Bills are ideal for chamas because:
- Government guarantee — zero default risk (unlike lending to businesses or members)
- Short terms — your money isn't locked for years
- Predictable returns — you know exactly what you'll earn
- Group decision — easy to explain to members: "We lend KES 100,000 to the government, they return KES 103,945 in 3 months"
The Practical Approach
Start with one 91-day T-Bill. Use KES 100,000 from your savings. When it matures in 3 months, show the members the return. That visible proof is more convincing than any presentation about investment strategy.