Investing
How to Buy Treasury Bills and Bonds in Kenya Through CBK DhowCSD (2026 Guide)
The Central Bank of Kenya’s DhowCSD platform lets you bid for Treasury bills and bonds yourself, with no broker in the middle. Here is how to register, bid, pay by RTGS or M-Pesa, what it costs, how the tax works and how to track your coupons and maturity dates.
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- No middlemen. Bid directly in primary CBK auctions for Treasury bills and bonds without brokers or commercial banks as intermediaries.
- Modern funding. Settle successful bids using standard bank RTGS transfers, or directly via M-Pesa for amounts up to KES 250,000.
- Centralised portfolio. Track auction results, payment details, upcoming corporate actions and coupon schedules in one digital dashboard.
Treasury bills vs Treasury bonds
Treasury bills are short-term government securities with 91-, 182- and 364-day tenors. You buy them at a discount and receive the full face value at maturity, with no interest payments in between. Treasury bonds are medium- to long-term securities that normally pay fixed interest every six months and repay the principal at maturity. CBK auctions bills weekly and bonds monthly.
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| Feature | Treasury bills | Treasury bonds |
|---|---|---|
| Tenor | 91, 182 or 364 days | Usually more than one year |
| Return | Discount to face value | Six-monthly coupons plus principal at maturity |
| Auction frequency | Weekly | Monthly |
| Non-competitive minimum | KES 50,000 | KES 50,000 |
| Competitive minimum | KES 2,000,000 | KES 2,000,000 |
| Payment method | RTGS or M-Pesa, where available | RTGS or M-Pesa, where available |
CBK’s auction notices set the minimums per CSD account per tenor: KES 50,000 for non-competitive bids and KES 2 million for competitive bids. Because you hold the security directly with the CBK, your holding is recorded on your own CSD account rather than in a broker’s pooled account.
What you need before registering
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- Personal verification: active email address and Kenyan mobile number; Kenyan national ID or passport; a clear, recent passport-size photo.
- Tax documentation: valid KRA PIN certificate, or official KRA exemption documentation where applicable.
- Settlement banking: an active Kenyan commercial bank account with the account name, account number, bank name and branch. The name must exactly match your DhowCSD profile.
You also need a computer or smartphone with internet access. CBK’s DhowCSD guide asks for a client photo, an identification document, your KRA PIN and, where applicable, a KRA exemption document. Have the files ready as scans or photos before you start, because the registration form asks you to upload them.
Step 1: Register on DhowCSD
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- Initiate. Go to dhowcsd.centralbank.go.ke or download the app. Click Create Account, then Physical Person.
- Profile and tax. Enter personal details, KRA PIN, nationality, occupation and contact information.
- Settlement details. Input the Kenyan commercial bank account that will fund purchases and receive all payouts.
- Document upload. Upload your ID or passport, photo and KRA PIN or exemption certificate. Verify your email via the CBK token.
- Activation. Your settlement bank confirms your details. CBK then activates the CSD account and emails your username.
In more detail:
- Go to dhowcsd.centralbank.go.ke, or download the DhowCSD app from Google Play or the Apple App Store.
- Click Create Account, then enter your email, a username and a password.
- Accept the terms and click Start Registration.
- Select Physical Person if you are registering as an individual.
- Complete your personal details: ID or passport number, KRA PIN, nationality, occupation and contact information.
- Enter your settlement bank details. This is the Kenyan account that will fund purchases and receive payouts.
- Upload your photo, ID or passport, KRA PIN certificate and, if it applies, your KRA exemption certificate.
- Verify your email with the token CBK sends you.
- Wait for your settlement bank to confirm the details and for CBK to activate the account.
After the bank confirms your details, CBK activates the CSD account and emails your username. HapaKenya reported in November 2025 that approval usually takes two to three days and that an unfinished registration is deleted after a week, so complete the form in one go. We could not find those timings on CBK’s own pages, so treat them as a guide.
Step 2: Bid in an auction
Log in, open the Auctions menu and read the notice before you choose a security. The fields to check are the issue number, tenor, auction date, bid deadline, coupon rate, value date and maturity date.
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- Issue number and tenor: identifies exactly which security you are buying and its duration, for example 364 days.
- Bid deadline: the absolute cutoff time. Bids submitted after it are rejected.
- Coupon rate: for bonds, your fixed six-monthly interest payout. Not applicable to Treasury bills.
- Value date and maturity date: the date the security is issued to your account, and the date your principal is returned.
Place the bid
- Select the Treasury bill or bond and click Create Bid.
- Choose Competitive or Non-Competitive.
- Enter the face value you want to buy, not the discounted price you expect to pay.
- For a competitive bid, enter your desired yield.
- Select the source of funds, such as salary, maturing securities or “Others”.
- Accept the legal and funding terms and click Place Bid.
- Review the summary, enter the OTP sent to your registered contact details and submit.
DhowCSD shows a success message once the bid is in.
Competitive vs non-competitive bids
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| Bid type | Minimum | What you enter | Pricing outcome | Best for |
|---|---|---|---|---|
| Non-competitive | KES 50,000 | Face value only | Weighted average accepted yield | Beginners and most individuals |
| Competitive | KES 2,000,000 per CSD account per tenor | Face value and desired yield | Your stated yield, only if accepted | Large or experienced investors |
A non-competitive bid is the simplest option. You enter only the face value, and if accepted your allocation is priced at the auction’s weighted average accepted yield. That removes the risk of pricing yourself out of the auction.
A competitive bid lets you name the minimum yield you will accept. CBK fills accepted bids from the lowest yield upward until it has raised the amount it wants. If your yield is too high, your bid may be rejected or only partly filled.
Step 3: Pay for a successful bid
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The myth: I must deposit money into my DhowCSD wallet before I can place a bid.
The reality: do not pre-fund. DhowCSD does not hold idle cash. You place your bid first, wait for the auction results, and send funds only after CBK confirms a successful allocation.
You fund the account only after CBK confirms that your bid succeeded and shows the exact amount payable.
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- The allocation check. Log into DhowCSD, go to the Transactions tab and locate your successful auction allocation.
- Capture the data. Note the amount payable (which may be discounted) and the unique payment key exactly as displayed. Check the strict settlement deadline.
- Execute the transfer. Log into your commercial bank and submit the transfer using the exact payment key as the reference.
Pay by RTGS
- In DhowCSD, open Transactions, find the allocation and note the payment key, the amount payable and the settlement deadline.
- Log in to your bank’s online banking, or go to a branch, and choose an RTGS transfer.
- Use CBK as the beneficiary, with the beneficiary details shown in DhowCSD or provided by CBK.
- Enter the exact amount payable and the payment key exactly as DhowCSD shows it.
- Pay from the bank account linked to your DhowCSD profile, before the deadline.
- Keep the bank confirmation slip or transaction reference.
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- RTGS, the standard: start it from your bank’s online banking or at a branch. The beneficiary is the Central Bank of Kenya. There is no upper limit, and it is the standard route for large allocations. The paying account must be the bank account linked to your DhowCSD profile.
- M-Pesa, the retail fast-track: start it directly in DhowCSD. It is currently capped at KES 250,000 per transaction, which is handy for the KES 50,000 non-competitive minimum.
CBK opened M-Pesa settlement through DhowCSD in November 2025, with a cap of KES 250,000 per transaction, and plans to add other mobile-money options. M-Pesa payments are made from the Transactions tab. An allocation above the cap has to go by RTGS.
Treasury bill and bond calculators
The first calculator estimates what you would pay for a Treasury bill and what you would earn. Enter the average accepted yield from CBK’s latest auction result; the 8% below is only an example. The second shows the coupon income from a bond bought at its face value.
Treasury bill: price and return
You pay (amount payable)
–Interest before tax
–Withholding tax
–Profit after tax
–Default example: KES 100,000, 364 days, 8% yield.
A simplified estimate: price = face value ÷ (1 + yield × days ÷ 364). The amount payable that DhowCSD shows after the auction is the figure you pay. The 8% yield and 15% tax rate are examples, not current rates.
Treasury bond: coupon income
Each six-monthly coupon
–Coupons a year, before tax
–Tax a year
–Net coupons over the term
–Default example: KES 500,000 at a 12% coupon for 5 years.
Assumes the bond is bought at its face value and held to maturity. A bond allotted at a premium or discount to face value changes what you pay, but not the coupon. The 12% coupon and 15% tax rate are examples.
Fees and tax
For direct bids in CBK auctions, DhowCSD is designed so individuals and companies can invest without a broker. CBK’s public auction notices do not publish a separate brokerage commission for direct DhowCSD bids.
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Direct platform costs (zero intermediary fees): direct primary auction participation via DhowCSD incurs no separate brokerage commission or custody fees, unlike routing through a broker or investment bank. CBK reserves the right to introduce service fees with 30 days’ notice, particularly for secondary-market trading.
External costs: your commercial bank’s standard RTGS transfer fee, or standard mobile-money charges for M-Pesa; and withholding tax on returns, unless you buy a specific tax-exempt security such as certain infrastructure bonds, which the bond prospectus will state.
CBK’s service agreement does reserve the right to charge for CSD services, execution of instructions, tokens, user credentials and other services, and it must give at least 30 days’ notice before introducing or changing fees. DhowCSD also lets you start secondary-market and pledge instructions in the app, so fees may apply to those. For a security bought at auction and held to maturity, your costs are mostly the bank’s RTGS charge and withholding tax.
| Cost type | Direct DhowCSD primary auction | Bank, broker or investment bank |
|---|---|---|
| CBK auction fee | No separate brokerage commission is published in current auction notices | Not applicable if you use DhowCSD directly |
| Intermediary fees | None if you invest directly | May include brokerage, custody, transaction or advisory fees |
| Bank RTGS charge | Your bank may charge for the transfer | Your bank may charge for the transfer |
| M-Pesa settlement | May attract standard mobile-money charges | Not applicable unless the intermediary arranges it |
| Secondary-market trading | DhowCSD supports starting secondary-market instructions | A broker or bank may charge a commission |
Based on CBK’s public auction notices and service agreement as read in October 2026. Fee schedules can change on 30 days’ notice.
Withholding tax
Interest on Treasury bills and bonds is generally subject to withholding tax, which for a resident individual is a final tax. The rate we used in the calculators is 15%, which is the usual rate for government securities with a maturity under 10 years, while interest on bonds of 10 years or more is reported at 10%. Some bonds, including certain infrastructure bonds, carry different or exempt treatment, and the bond prospectus states it. We could not find a single CBK or KRA page that lists the rate for every security, so confirm the rate in the prospectus or with KRA before you rely on a net figure.
Track coupons and maturity
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- Tracking bonds: look for the Corporate Actions or Coupon Dates tabs. Track your six-monthly interest schedule. Check the prospectus to see whether the bond repays all principal at the end (bullet) or part of it early (amortising).
- Tracking bills: bills have no periodic coupons. Track the maturity date to know when the full face value will reach your bank account.
The phone screen in the slide is an illustration.
Check your holdings
- Log in on the web portal or the app and open Portfolio or Holdings.
- Select a security and check its name, issue number, face value held, coupon rate, purchase date and maturity date.
Your portfolio statement lists the securities registered under your CSD account, and DhowCSD also shows auction results, payment details and upcoming corporate actions.
Bond coupons
Open the bond and look for Corporate Actions, Coupon Dates or the payment schedule, then note the next coupon date and the amount. CBK’s bond prospectuses publish the full schedule, usually with payments every six months until maturity. Keep your linked bank account open and correctly named, because that is where the money goes.
Maturity and repayment
Most conventional bonds repay the full principal on the maturity date. Some infrastructure bonds amortise, which means part of the principal is repaid before final maturity, and the prospectus sets this out. For a Treasury bill there are no coupons to track: confirm the maturity date and expect the full face value in your linked account on that day.
After maturity you can withdraw the money, reinvest it in another auction or use it for something else. Because DhowCSD shows upcoming corporate actions, you can plan the reinvestment before the maturity date arrives.
Common mistakes to avoid
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| The error | The consequence | The fix |
|---|---|---|
| Sending an RTGS transfer without the exact DhowCSD payment key | Unmatched funds; settlement fails | Always copy the payment key exactly as shown in the Transactions tab |
| Entering the discounted price instead of the face value when bidding | You bid for a lower face value than intended, or are rejected if it falls below KES 50,000 | Always bid on face value (for example KES 50,000 or KES 100,000) |
| Bank account name mismatch | Bank verification fails during registration or maturity payout | Make sure the account name matches your DhowCSD profile |
| Unrealistic competitive yields | Outbidding the market gives total bid rejection | Stick to non-competitive bids unless highly experienced |
A few more to watch for:
- Bidding before your DhowCSD account is active.
- Missing the auction or settlement deadline.
- Assuming a competitive bid is guaranteed. A high requested yield can mean rejection or a partial allocation.
- Ignoring the prospectus on coupon dates, tax, amortisation and maturity.
Quick checklist
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- Onboard: prepare tax and ID documents, input your settlement bank, await CBK activation.
- Execute: review the auction notice, select a T-bill or T-bond, place a non-competitive bid (minimum KES 50,000).
- Settle: wait for the allocation, check the amount payable and payment key, transfer by RTGS or M-Pesa before the deadline.
- Earn: track your portfolio, receive six-monthly coupons on bonds and the principal at maturity. Keep your settlement bank account active.
- Open and activate a DhowCSD account.
- Read the current Treasury bill or bond auction notice.
- If you are a beginner, place a non-competitive bid from KES 50,000.
- After the auction, check Transactions for your allocation, amount payable and payment key.
- Pay by RTGS from your linked bank account before the deadline, or by M-Pesa for up to KES 250,000.
- Track holdings, coupon dates and maturity dates in the portfolio section.
- Keep your settlement bank account active so coupons and maturity payments arrive without delay.
Frequently asked questions
Can I buy Treasury bills and bonds without a broker in Kenya?
Yes. You can register on the CBK’s DhowCSD platform, on the web or in the app, and bid directly in primary auctions. CBK’s public notices do not publish a separate brokerage commission for direct bids.
What is the minimum amount to invest through DhowCSD?
CBK’s auction notices set KES 50,000 for a non-competitive bid and KES 2 million for a competitive bid, per CSD account per tenor.
Do I need to deposit money into DhowCSD before I bid?
No. You place your bid first and pay only after CBK confirms a successful allocation and shows the amount payable and payment key in the Transactions tab.
How do I pay for a successful bid?
Use an RTGS transfer from the bank account linked to your DhowCSD profile, with the exact amount payable and the payment key as the reference. For smaller amounts you can pay by M-Pesa through DhowCSD, capped at KES 250,000 per transaction.
What is the difference between a competitive and a non-competitive bid?
With a non-competitive bid you enter only the face value and accept the auction’s weighted average accepted yield. With a competitive bid you also state a yield, and CBK may reject or partly fill your bid if the yield is too high.
How do Treasury bills pay interest?
They do not pay periodic interest. You buy a bill at a discount to its face value and receive the full face value at maturity, so the difference is your return before tax.
How often do Treasury bonds pay interest?
Bonds normally pay a fixed coupon every six months and repay the principal at maturity. Some infrastructure bonds amortise, so check the prospectus.
What fees do I pay on DhowCSD?
CBK does not publish a separate brokerage commission for direct primary bids, but it reserves the right to charge for CSD services on 30 days’ notice. Your main costs are your bank’s RTGS charge and withholding tax.
Is the interest on Treasury bills and bonds taxed?
Generally yes, through withholding tax, which is a final tax for resident individuals. We used 15% in the calculators, but some securities, such as certain infrastructure bonds, are treated differently, so check the prospectus.
Where can I track my coupons and maturity dates?
In the Portfolio or Holdings section of DhowCSD. Open a bond to see its coupon schedule and maturity date. For a bill, check the maturity date, because there are no coupons.
Final thoughts
DhowCSD removes the middleman from government securities, but it also removes the hand-holding. Get the registration right once, start with a non-competitive bid, copy the payment key exactly and keep your settlement bank account open. Read each auction notice and prospectus, because yields, coupon dates and tax treatment differ from one security to the next.
How we researched this guide
This is an independent, source-based guide. The registration, bidding, minimums, settlement, fee and tracking details come from CBK’s DhowCSD guidance and auction notices as summarised in the draft this guide is built on. The M-Pesa limit and the reported approval timings come from HapaKenya’s November 2025 report, and the withholding tax rates from Serrari Group’s 2026 tax guide, which we could not match to a single KRA page. We replaced one deck slide whose worked example implied an unrealistically low yield, softened one claim about guaranteed allocation, and did not use the title and closing slides. We have not been paid by CBK, any bank or any broker for this guide, and we do not give personal investment advice. Contact the editor to report an error.
Sources
- Central Bank of Kenya, DhowCSD investor portal (registration and bidding)
- Central Bank of Kenya, Treasury bills (auction notices and results)
- Central Bank of Kenya, Treasury bonds (auction notices and prospectuses)
- HapaKenya, CBK unlocks mobile payments for treasury bills and bonds via DhowCSD (M-Pesa limit and approval timing)
- Serrari Group, Kenyan investment tax guide 2026 (withholding tax rates, secondary source)
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