What is a Treasury Bill?
A treasury bill is a paperless short-term borrowing instrument issued by the Government through the Central Bank of Kenya (as a fiscal agent) to raise money on short term basis – for a period of up to 1 year. Treasury bills are issued in maturities of 91, 182 and 364 days. Treasury bills are sold at a discounted price to reflect investor’s return and redeemed at face (par) value.
Who Can Invest in Treasury Bills in Kenya?
- Resident or non-resident individuals and/or corporate bodies who hold an account with a local commercial bank
- Resident or non-resident individuals and/or corporate bodies who may not have an account with a local commercial bank but invests as a nominee of a commercial bank or investment bank in Kenya
- Resident or non-resident individual and/or corporate bodies that has CDS Account with Central Bank of Kenya
- Must have minimum face value of Ksh.100, 000. Any additional amounts MUST be in multiples of Kshs. 50,000.
Please note that a non-Kenyan investor who is NOT domiciled in Kenya can invest in Kenya Government Treasury bills as a NOMINEE of either a local commercial bank, investment bank or stock broker. Non-Kenyan investors domiciled in Kenya can however invest directly by opening CDS account at CBK. Read More