Treasury Bills in Tanzania 2026: How to Invest and Yields

The Bank of Tanzania auctions Treasury bills on behalf of the government. They are short-term, government-backed and open to individuals as well as institutions, which makes them one of the safest ways to earn a return on Tanzanian shillings. This guide explains how Treasury bills in Tanzania work, recent yields, how to invest step by step, and how they compare with unit trusts.

Treasury bills in Tanzania: the basics

Tanzanian Treasury bills come in four terms, or tenors: 35, 91, 182 and 364 days. The minimum investment is TZS 500,000, in multiples of TZS 10,000 above that. Treasury bills are sold at a discount: you pay less than the face value when you buy and receive the full face value at maturity. The difference is your return, and there are no interest payments in between.

For example, if you buy a bill with a face value of TZS 1,000,000 and pay TZS 940,000, you receive TZS 1,000,000 at maturity and earn TZS 60,000 before tax.

Recent Treasury bill yields

At the auction of 23 September 2026, the weighted average yields were 2.52% for the 35-day bill, 3.39% for the 91-day bill, 5.29% for the 182-day bill and 6.29% for the 364-day bill. The longer bill pays much more, so if you will not need the money for a year, the 364-day bill has been the better deal. Yields change at every auction, and the Bank of Tanzania's Central Bank Rate is 6.25% for October to December 2026.

Compare yields with inflation to see your real return. With inflation at 4.3% in September 2026, the 364-day bill offered a positive real return, while the shortest bills did not keep pace.

How to invest in Treasury bills in Tanzania

1. Open an account. Open an account for government securities through a commercial bank that is a dealer in the auctions. Bring your NIDA national ID and your bank account details. The bank registers you so that bills can be recorded in your name.

2. Submit a bid. Bids must reach the Bank of Tanzania before the auction closes. A competitive bid names the yield you want; if it is too high, it may be rejected. A non-competitive bid accepts the weighted average yield of the auction, which is the simplest choice for most individuals.

3. Pay on the settlement date. If your bid succeeds, pay the discounted price on the settlement date. Your bank will tell you the exact amount and deadline.

4. Collect or roll over. At maturity, the face value is paid into your account. You can collect it or roll it into the next auction to keep your money invested.

Tax on Treasury bills

Interest on Tanzanian Treasury bonds is generally subject to 10% withholding tax, and some listed infrastructure bonds are exempt. Tax rules for bills can differ, so ask your bank how tax will be applied to your bill before you invest and compare returns after tax.

Treasury bills or Treasury bonds?

If you want to lock in a rate for longer, the Bank of Tanzania also auctions Treasury bonds with terms of several years, which pay interest every six months. Bonds can usually be sold on the Dar es Salaam Stock Exchange before maturity, though the price depends on market conditions. Bills are better for money you will need within a year.

Treasury bills or a unit trust?

If TZS 500,000 is more than you can set aside at once, a unit trust such as those run by UTT AMIS lets you start with a smaller amount and withdraw more easily. Unit trusts do not lock your money to a maturity date, but their returns change over time. See UTT AMIS unit trusts explained, and use our savings calculator to plan how long it will take to save the minimum for a Treasury bill.

Frequently asked questions

What is the minimum investment for Treasury bills in Tanzania?

TZS 500,000, in multiples of TZS 10,000.

Which Treasury bill pays the most in Tanzania?

Recently the 364-day bill, which yielded 6.29% in September 2026.

Can I sell a Treasury bill before maturity?

It is designed to be held to maturity; ask your bank about options before you invest, and only use money you can leave untouched.

Treasury bills in Tanzania: how to invest and what they pay