How to Buy Treasury Bills and Bonds in Uganda (2026 Guide)

Treasury bills and bonds are loans to the Government of Uganda, sold by the Bank of Uganda at regular auctions. They are among the safest places in Uganda to earn interest, and you can start with UGX 100,000. Government securities are popular with savers who want a predictable return without the risks of shares or private schemes. This guide explains the difference between bills and bonds, how the interest is taxed, and how to buy Treasury bills and bonds in Uganda step by step.

Treasury bills or Treasury bonds?

Treasury bills run for 91, 182 or 364 days. They are sold at a discount: you pay less today and receive the full face value at maturity, and the difference is your return. Bill auctions are usually held twice a month, which makes them a good fit for money you will need within a year.

Treasury bonds run for 2, 3, 5, 10, 15 or 20 years and pay interest, called a coupon, every six months. Bond auctions are usually held once a month. Bonds suit long-term goals such as building retirement income or paying school fees in future years, because they lock in a rate for many years.

How interest on government securities is taxed

Withholding tax is deducted from the interest before you receive it, and it is a final tax, so you do not have to declare it again. The rate is 20% on Treasury bills and on bonds of less than 10 years, and 10% on bonds of 10 years or longer. Qualifying listed infrastructure bonds of at least 10 years can be fully exempt.

So on UGX 100,000 of interest from a bill you keep UGX 80,000, while on a 15-year bond you keep UGX 90,000. The lower tax is one reason long-term bonds can pay noticeably more after tax.

How to buy Treasury bills and bonds in Uganda

1. Open a CSD account. The Central Securities Depository (CSD) account holds your government securities electronically. Open it through a commercial bank that deals in government securities, known as a primary dealer, using your national ID or passport and your bank details.

2. Choose a bill or bond. Check the Bank of Uganda's auction calendar for upcoming bill and bond auctions, and decide which term matches your goal.

3. Place a bid through your bank. A non-competitive bid accepts the average rate of the auction and is the easiest option for individuals. A competitive bid names your own rate and may be rejected if it is higher than the rate the Bank of Uganda accepts.

4. Pay on time. If your bid succeeds, transfer the money within the window your bank gives you. The security is then credited to your CSD account, and you can view it in your statement.

5. Get paid. Bills pay the face value at maturity. Bonds pay interest every six months into your bank account and return your principal at maturity.

Selling before maturity

If you need the money early, banks can sell your bonds on the secondary market, usually with cash in about a day. The price depends on the market at the time: if interest rates have risen since you bought, your bond may sell for less than you paid, and if rates have fallen it may sell for more. For this reason, it is best to invest money you can leave until maturity.

Why interest rates matter now

The Bank of Uganda raised its Central Bank Rate to 12% in October 2026. Higher policy rates usually push up the yields the government offers at auction, which is good news for new investors. See the latest on our money in Uganda page.

Treasury bills versus other savings options

Government securities sit alongside other safe options in Uganda. Unit trusts let you invest smaller amounts and withdraw more easily, while NSSF savings are locked until retirement; compare them in our guides to unit trusts in Uganda and the NSSF Uganda interest rate. Our fixed deposit calculator helps compare returns over a set period.

Frequently asked questions

What is the minimum to invest in Treasury bills in Uganda?

You can start with UGX 100,000.

How often are Treasury bill auctions held in Uganda?

Bill auctions are usually held twice a month and bond auctions once a month, according to the Bank of Uganda's calendar.

Are Treasury bonds in Uganda safe?

They are backed by the government, which makes them among the safest investments in the country, though prices on the secondary market can move with interest rates.