Uganda · Bank of Uganda

Uganda Treasury Bills

Treasury bills are the Government of Uganda'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 Uganda, for the Government
Where to buy: A CSD account at a commercial bank
Minimum: UGX 100,000, and multiples thereof
Tenors: 91, 182 and 364 days
Return: Bought at a discount — no coupon
Auctions: Every two weeks

01What are Uganda treasury bills?

A treasury bill is a short-term loan to the Government of Uganda, issued by the Bank of Uganda for 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 Uganda

Rates are set at each fortnightly auction by what investors bid, so the 91, 182 and 364-day bills each carry their own yield and it moves auction to auction. For current figures, read the latest results from the Bank of Uganda or ask any primary-dealer bank.

03How to buy treasury bills in Uganda

1
Open a CSD account
Open a Central Securities Depository account at any commercial bank. You'll need an ID or passport, passport photos, your bank details and a URA TIN.
Foreign or diaspora investor? See below ↓
2
Check the fortnightly offer
Bank of Uganda auctions 91, 182 and 364-day bills every two weeks, publishing the offer and auction date in advance.
3
Place your bid
Bid through your bank before the deadline — competitive (you name the rate) or non-competitive (you accept the weighted average). The non-competitive minimum is UGX 100,000.
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 account. You can roll it straight 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 20% 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

Yes — non-residents can buy. Uganda's government securities are open to foreign investors. Open a Central Securities Depository (CSD) account at a Ugandan commercial bank and bid through it; the auction form recognises non-resident funds.
The URA TIN is the easy part. You need a URA Tax Identification Number. A non-resident registers on the URA e-services portal with a passport — it's free, and there's no requirement to appoint a local tax representative.
A Ugandan-shilling account helps. Settlement, coupons and redemptions are in UGX, so you (or a custodian bank) need a local account — non-residents are allowed to hold one.
The withholding tax is your final tax. Interest is taxed at source — 20%, or 10% on bonds of ten years or more — which settles the Ugandan liability for a non-resident.
No exchange controls. Uganda liberalised its capital account in 1997, so coupons and principal repatriate freely. You convert UGX back to your currency — so exchange-rate moves affect your real return.

Rules and rates change — verify against the Bank of Uganda, USE and URA before you commit. This is information, not tax or investment advice.

05Common questions

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

UGX 100,000 for a non-competitive bid, and in multiples of UGX 100,000 above that. The same minimum applies to treasury bonds.

How are treasury bills taxed in Uganda?

The discount — the gap between what you pay and the face value you receive — is treated as interest and taxed at 20% withholding, deducted at source. (The reduced 10% rate only applies to bonds of ten years or more, so it never applies to bills.)

How often are treasury bills auctioned?

Every two weeks. Bank of Uganda offers all three tenors — 91, 182 and 364 days — on a fortnightly auction calendar.

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

Treasury bills are short-term (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 Uganda 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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