Tanzania · Bank of Tanzania

Tanzania Treasury Bills

Treasury bills are the Government of Tanzania's short-term borrowing — a place to park money for a year or less at a known, government-backed return. Here is what they pay, how to buy them, and how they're taxed.

Issuer: Bank of Tanzania, for the government
Where to buy: A CDS account at a bank or broker
Minimum: TZS 500,000, in multiples of 10,000
Tenors: 35, 91, 182 and 364 days
Return: Bought at a discount — no coupon
Tax: 15% withholding on the interest

01What are Tanzania treasury bills?

A treasury bill is a short-term loan to the Government of Tanzania, issued by the Bank of Tanzania for 35, 91, 182 or 364 days. You buy it below its face value and are repaid the full face value at maturity — that difference is your interest. There is no separate coupon.

Because the term is short and the borrower is the government, bills are about the lowest-risk way to earn a defined return on money you don't need for a few months.

02Treasury bill rates in Tanzania

Rates are set at auction by what investors bid, so each tenor carries its own yield and it moves auction to auction. For current figures, read the latest results from the Bank of Tanzania or ask your bank or broker.

03How to buy treasury bills in Tanzania

1
Open a CDS account
Open a Central Depository System account through a commercial bank or a CMSA-licensed stockbroker. You'll need a national ID (NIDA) or passport, a TRA Tax Identification Number and two passport photos.
Foreign or diaspora investor? See below ↓
2
Check the auction advert
Bank of Tanzania publishes an advert for each auction, naming the tenors on offer — 35, 91, 182 and 364 days — and the deadline.
3
Place your bid
Bid through your bank or broker before the deadline — competitive (you name the rate) or non-competitive (you accept the weighted average). The minimum bid is TZS 500,000.
4
Pay the discounted price
If your bid succeeds, settle by the date given. You pay less than the face value — that discount is your return.
5
Collect the face value at maturity
On the maturity date the full face value is paid into your bank account. You can roll it into the next auction.

04Returns & tax

Your return is the discount: buy below face value, collect the full face value at maturity. One deduction applies:

A 15% withholding tax on the interest (the discount), deducted at source — so the figure that reaches you is already net of tax.
No coupon and no price swings if you hold to maturity: the return you lock in at the auction is the return you get.

Often unclear — here's the answer

For foreign & diaspora investors

Open to EAC residents — not everyone. Unlike Kenya and Uganda, Tanzania's government securities are restricted: only Tanzanian residents and East African Community (EAC) residents may buy at auction. Tanzanians in the diaspora can take part.
Foreign holdings are capped. EAC investors can hold at most 40% of any single security issued, and there's a minimum holding period (commonly cited as twelve months) before securities bought at the primary auction can be resold.
You'll need a CDS account and a TRA TIN. Open a Central Depository System account at a commercial bank or licensed broker — with a national ID or passport, photos and a Tanzania Revenue Authority TIN.
Longer bonds are tax-free. Treasury bills and 2-year bonds carry a 15% withholding tax, but bonds of five years and longer are exempt from withholding tax — a strong pull toward the long end.
Repatriation works, but it's documented. Tanzania keeps active foreign-exchange controls. Coupons and proceeds can be remitted, but you'll need paperwork — tax clearance and supporting documents — so plan with your bank.

Rules and rates change — verify against the Bank of Tanzania, DSE, CMSA and TRA before you commit. This is information, not tax or investment advice.

05Common questions

What is the minimum amount to buy a treasury bill in Tanzania?

TZS 500,000, in multiples of TZS 10,000. (Treasury bonds start higher, at TZS 1,000,000.)

How are treasury bills taxed in Tanzania?

The discount — the gap between what you pay and the face value you receive — is treated as interest and taxed at 15% withholding. The withholding-tax exemption only applies to bonds of five years or more, so it never applies to bills.

Can foreigners buy Tanzanian treasury bills?

Only partly. Tanzania restricts government securities to Tanzanian residents and East African Community (EAC) residents, with foreign holdings capped at 40% of each issue. Tanzanians in the diaspora can take part. See the foreign-investor section below.

What is the difference between a treasury bill and a treasury bond?

Treasury bills are short-term (35, 91, 182 or 364 days), sold at a discount with no coupon. Treasury bonds run 2 to 25 years and pay a fixed coupon every six months until maturity.

Rolling bills over? Never miss a maturity.

Tamias tracks every treasury bill, bond and share you own across Tanzania and East Africa, computes your true return after tax, and nudges you before each maturity — so matured money never sits idle.

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