Uganda · Bank of Uganda
Uganda Treasury Bonds
Treasury bonds are how the Government of Uganda borrows for the long term — and a dependable, government-backed return for ordinary savers. 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
- 2, 3, 5, 10, 15, 20 or 25 years
- Coupon
- Fixed, paid every six months
- Auctions
- Wednesdays, about twice a month
- Settlement
- T+1 — the next day, Thursday
01What are Uganda treasury bonds?
A treasury bond is a loan you make to the Government of Uganda. In return you receive a fixed interest payment — the coupon — every six months, and your capital back when the bond matures. They are issued by the Bank of Uganda on the government's behalf, which makes them among the lowest-risk instruments available.
Tenors run from 2 up to 25 years. The longer maturities are taxed more lightly (see below), which rewards investors who can lock money away.
02Treasury bond rates in Uganda
Each bond's coupon is fixed when it is first issued, and its yield is decided at auction by what investors bid — so rates move with every issue. For current figures, read the latest auction results from the Bank of Uganda or ask any primary-dealer bank, rather than trust a number on any page (including this one).
03Auction day & settlement
Bank of Uganda holds treasury bond auctions on Wednesdays, about twice a month, with the tenor on offer — drawn from 2, 3, 5, 10, 15, 20 and 25 years — named in the invitation to tender. Bids are submitted through the CSD by 10:00am on the auction day. If your bid succeeds, settlement — when your account is debited and the bond credited — happens the next day, Thursday (T+1). Treasury bills follow the same Wednesday-to-Thursday cycle, but weekly.
04How to buy treasury bonds in Uganda
- 1
Open a CSD account
Open a Central Securities Depository account at any commercial bank (several are Bank of Uganda primary dealers). You'll need an ID or passport, passport photos, your bank details and a URA TIN.
Foreign or diaspora investor? See below ↓ - 2
Watch the auction calendar
Bank of Uganda auctions bonds about twice a month, with each auction offering particular tenors. The calendar and offer are published ahead of time.
- 3
Place your bid
Bid through your bank before the deadline: a competitive bid (you name the yield) or a non-competitive bid (you accept the weighted average). The non-competitive minimum is UGX 100,000.
- 4
Pay for accepted bids
If your bid succeeds, settle the amount by the date given. The bond is recorded in your CSD account.
- 5
Collect coupons, then principal
Interest is paid into your account every six months, and the face value is repaid at maturity. Coupons can be rolled into the next auction.
05Returns & tax
Your return is the coupon, paid twice a year, plus the face value at maturity. The withholding tax rate depends on the tenor — but not on who's investing:
| Investor type | Rate | Is it final? |
|---|---|---|
| Resident individual | 20% (<10yr) / 10% (≥10yr) | Yes, final |
| Resident company | 20% (<10yr) / 10% (≥10yr) | No — credited against the 30% corporate income tax bill |
| Non-resident | 20% (<10yr) / 10% (≥10yr) | Yes, final |
The 10% rate for bonds of ten years or more is a deliberate incentive to lend long — and it applies the same way whether you're Ugandan or foreign, an individual or a company.
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.
06Common questions
What is the minimum amount to buy a treasury bond 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 bills.
How are treasury bonds taxed in Uganda?
Interest is subject to a 20% withholding tax, falling to 10% for bonds with a maturity of ten years or more — Uganda taxes longer-dated bonds more lightly to encourage long-term lending.
What tenors does Bank of Uganda offer?
Treasury bonds are issued from 2 years up to 25 years (2, 3, 5, 10, 15, 20 and 25-year bonds), all paying a fixed coupon every six months.
What is the difference between a treasury bond and a treasury bill?
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.
Do foreigners or companies pay a different tax rate on Ugandan treasury bonds?
No — the 20% (or 10%, for bonds of ten years or more) withholding tax applies equally to residents, non-residents, individuals and companies. What differs is what happens next: a resident company credits the tax against its 30% corporate income tax bill, while for an individual or a non-resident it's the final tax.
Hold more than one bond? See them as one number.
Tamias totals every treasury bond, bill and share you own across Uganda and East Africa, computes your true return after tax, and nudges you before each coupon and maturity — so matured money never sits idle.
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