How to invest in Treasury Bills (T-Bills)
Here's everything you need to know.
Here's everything you need to know.
What are Treasury Bills?
Imagine lending money to the government for a few months & earning interest in return. That's what Treasury Bills are!
They're short-term debt instruments issued by the Central Bank of Kenya (CBK) with maturities of 91, 182, or 364 days.
Imagine lending money to the government for a few months & earning interest in return. That's what Treasury Bills are!
They're short-term debt instruments issued by the Central Bank of Kenya (CBK) with maturities of 91, 182, or 364 days.
How it T-Bills work:
—Invest your money at a discounted price.
—After the maturity period, you get your initial investment back (face value) plus interest
Example
Taking a 91-day bill with a face value of Sh100,000 and a 16% interest rate, you would have to pay around Sh87,628.64 upfront and after 91 days, you would get Sh100,000, making an interest of approximately Sh12,371
—Invest your money at a discounted price.
—After the maturity period, you get your initial investment back (face value) plus interest
Example
Taking a 91-day bill with a face value of Sh100,000 and a 16% interest rate, you would have to pay around Sh87,628.64 upfront and after 91 days, you would get Sh100,000, making an interest of approximately Sh12,371
Why Invest in T-Bills?
—Safe: Backed by the government, making them secure.
—Attractive returns: Typically higher than savings accounts.
—Flexible: Sell them before maturity on the secondary market.
—Regular opportunities: Auctioned weekly (91-, 182-, and 364-day options)
—Safe: Backed by the government, making them secure.
—Attractive returns: Typically higher than savings accounts.
—Flexible: Sell them before maturity on the secondary market.
—Regular opportunities: Auctioned weekly (91-, 182-, and 364-day options)
To invest in Treasury Bills in Kenya:
You need to have at least Sh100,000 available to invest initially.
If you want to invest more, you can add only in multiples of Sh50,000
You need to have at least Sh100,000 available to invest initially.
If you want to invest more, you can add only in multiples of Sh50,000
Investing methods:
1. Directly through the CBK:
—No additional fees
beyond the auction process.
—Full control over bidding.
—Requires a CDS account through Dhowcsd platform
2.Through a commercial bank or investment firm:
—Some banks offer additional services or guidance.
—May charge additional fees
1. Directly through the CBK:
—No additional fees
beyond the auction process.
—Full control over bidding.
—Requires a CDS account through Dhowcsd platform
2.Through a commercial bank or investment firm:
—Some banks offer additional services or guidance.
—May charge additional fees
Here's how to use DhowCSD to buy T-Bills:
1. Download the DhowCSD Mobile App from playstore
1. Download the DhowCSD Mobile App from playstore
New User: Click "Create Account"
Existing User: Select "Already have a CSD account" to activate your online account.
Securities: The "Securities" tab displays the available investment options on the secondary market.
Existing User: Select "Already have a CSD account" to activate your online account.
Securities: The "Securities" tab displays the available investment options on the secondary market.
—Enter your "Email Address."
—Choose a username that is easy to remember.
—Set a strong password
—Accept the Legal terms by clicking the checkbox.
Click the button labeled "start registration" to begin the official process for your CSD account
—Choose a username that is easy to remember.
—Set a strong password
—Accept the Legal terms by clicking the checkbox.
Click the button labeled "start registration" to begin the official process for your CSD account
—User Type: Enter "Physical".
—Full Names: Type your full names exactly as they appear on your official ID or passport.
—Identifier choose 'National ID' and your National ID no..
—11 Digit KRA Pin: Enter your 11-digit Kenya Revenue Authority PIN.
—Tax Exemption: leave this blank since individuals are not tax exempt.
—NSE Broker: Select preffered broker. In this example we have selected: "AIB - AXYS Africa".
—click on "next"
—Full Names: Type your full names exactly as they appear on your official ID or passport.
—Identifier choose 'National ID' and your National ID no..
—11 Digit KRA Pin: Enter your 11-digit Kenya Revenue Authority PIN.
—Tax Exemption: leave this blank since individuals are not tax exempt.
—NSE Broker: Select preffered broker. In this example we have selected: "AIB - AXYS Africa".
—click on "next"
After clicking on "NEXT"
You will be required to
—Enter your phone number
—Your Address
—Other details are optional.
You will be required to
—Enter your phone number
—Your Address
—Other details are optional.
After clicking "Next," you will be required to update your designated account for all investment payments
—Please select your account type:
*Individual Account
—Please enter your bank account details:
*Account Number
*Account Name
*Bank Name
Click on "next"
—Please select your account type:
*Individual Account
—Please enter your bank account details:
*Account Number
*Account Name
*Bank Name
Click on "next"
You will be required to apload the following:
—Your photo.
—Provide identification: Upload a copy of your ID or passport.
—Apload your KRA PIN certificate
—Tax exemption If you have a tax exemption certificate,upload it.
—After that click on 'NEXT'
—Your photo.
—Provide identification: Upload a copy of your ID or passport.
—Apload your KRA PIN certificate
—Tax exemption If you have a tax exemption certificate,upload it.
—After that click on 'NEXT'
You will be required to validate your email address by entering the verification code sent to your registered email
—Enter the code and click on verify
—Enter the code and click on verify
Log in again and navigate to your Account details on the dashboard.
Then, under "List of custodians," select your bank and fill in the required details.
Your settlement details will be created successfully.
Please note that there may be a waiting period for them to be updated.
Then, under "List of custodians," select your bank and fill in the required details.
Your settlement details will be created successfully.
Please note that there may be a waiting period for them to be updated.
Once your profile is approved after 24-72 hours, and your request for bank settlement is also approved, you will receive an email containing:
—Your CSD account.
—Settlement account title.
—Settlement account number.
—Settlement bank name.
—Your CSD account.
—Settlement account title.
—Settlement account number.
—Settlement bank name.
Once your settlement account is approved, you can access the BUY/SELL button using your new CSD account.
There, you can choose your preferred bill type: 91-day, 182-day, or 364-day.
Incase you get stuck feel free to whatsapp us on 0769000111
There, you can choose your preferred bill type: 91-day, 182-day, or 364-day.
Incase you get stuck feel free to whatsapp us on 0769000111
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