Use the BOU weighted average rate from the latest auction results. Pre-filled with a typical reference rate.
Minimum investment: UGX 100,000
Face Value to bid
The amount you subscribe for at auction
UGX 5,390,836
Your investment (price paid)
Settled the day after auction
UGX 5,000,000
Gross discount earned
Your interest before tax
UGX 390,836
Withholding Tax (20%)
Deducted at source by BOU at maturity
− UGX 78,167
Net proceeds at maturity
Paid to you after 182 days
UGX 5,312,668
Net profit
After-tax return on your investment
UGX 312,668
Effective net yield
Annualised return after WHT — comparable to a savings rate
12.51% p.a.
Compare across all tenorsfor an investment of UGX 5,000,000
| Metric | 91-day | 182-day ★ | 364-day |
|---|---|---|---|
| Rate used | 13.50% | 14.50% | 15.50% |
| Investment | UGX 5,000,000 | UGX 5,000,000 | UGX 5,000,000 |
| Face Value to bid | UGX 5,174,644 | UGX 5,390,836 | UGX 5,917,160 |
| WHT deducted | UGX 34,929 | UGX 78,167 | UGX 183,432 |
| Net proceeds | UGX 5,139,715 | UGX 5,312,668 | UGX 5,733,728 |
| Net profit | UGX 139,715 | UGX 312,668 | UGX 733,728 |
| Eff. net yield | 11.18% p.a. | 12.51% p.a. | 14.67% p.a. |
★ = currently selected tenor
How this works
T-bills are discount instruments. You pay a discounted price today and receive the full face value at maturity. The difference is your interest — called the discount. BOU deducts 20% withholding tax on this discount before paying you at maturity.
Formula: Price = Face Value × (1 − Rate × Tenor/364)
Frequently Asked Questions — Uganda T-Bills
What is a Treasury Bill (T-bill) in Uganda?
A Treasury Bill is a short-term government security issued by the Bank of Uganda (BOU) on behalf of the Ministry of Finance. T-bills have tenors of 91, 182, or 364 days. They are sold at a discount — you pay less than the face value and receive the full face value at maturity. The difference is your return (the discount). T-bills are considered risk-free because they are guaranteed by the Government of Uganda.
What is the minimum amount needed to invest in Uganda T-bills?
The minimum bid amount for Uganda Treasury Bills at the Bank of Uganda auction is UGX 100,000. However, if you invest through a licensed broker or investment firm (such as Xeno, Crested Capital, or UAP Old Mutual), the minimum may be lower — some platforms allow you to start from UGX 10,000 through a money market fund that holds T-bills.
How does withholding tax work on T-bills in Uganda?
The Bank of Uganda deducts 20% withholding tax (WHT) on the discount (your interest) before paying you at maturity. For example, if you earn a gross discount of UGX 100,000, UGX 20,000 is withheld and you receive UGX 80,000 in net interest. The WHT is a final tax — you do not include T-bill income in your annual income tax return.
What is the difference between face value and investment price for T-bills?
The face value (also called the nominal or par value) is the amount you bid for at auction — it is what BOU pays you at maturity. The investment price (or discounted price) is the lower amount you actually pay on settlement day. The formula is: Price = Face Value × (1 − Discount Rate × Tenor/364). For example, for a 182-day T-bill with a face value of UGX 1,000,000 at a 14.5% rate, you would pay approximately UGX 927,747.
How do I buy T-bills in Uganda?
You can buy T-bills in Uganda through two routes: (1) Direct at BOU auction — open a CSD (Central Securities Depository) account at the Bank of Uganda, obtain a BID form from a primary dealer bank (Stanbic, ABSA, DFCU, Centenary), submit your bid by 10:00 AM on auction Wednesday; (2) Through a licensed broker or investment platform — firms like Xeno Investment Management, Crested Capital, or UAP Old Mutual handle the auction process for you, often with lower minimums and easier onboarding.
How are Uganda T-bill discount rates determined?
T-bill rates are set by the market through a competitive auction process every two weeks. Investors (banks, fund managers, individuals) submit bids stating the rate they require and the amount. The Bank of Uganda accepts bids from the lowest rate upward until the target amount is raised. The published 'weighted average rate' is the average rate of all accepted bids, weighted by the amounts. Rates tend to track the BOU Central Bank Rate (CBR) and inflation expectations.
Are T-bills a safe investment in Uganda?
Uganda Treasury Bills are considered among the safest investments available in Uganda. They are issued by the Government of Uganda (through the Ministry of Finance and Bank of Uganda) and are backed by the government's ability to raise taxes and print money. There is no default risk. There is no market value fluctuation risk if you hold to maturity. The main risks are inflation risk (if inflation exceeds your yield) and reinvestment risk (rates may be lower when you roll over at maturity).
Can I sell my T-bill before maturity?
Yes. Uganda T-bills are listed on the secondary market operated by the Bank of Uganda. You can sell your T-bill before maturity, but the price you receive will depend on current market rates at the time of sale. If rates have risen since you bought, the market price of your T-bill will be lower than your original purchase price. For ordinary investors, holding to maturity is usually the simplest and most predictable approach.
How does a T-bill compare to a savings account or fixed deposit in Uganda?
T-bills typically offer higher returns than bank savings accounts (which pay 3–8% p.a.) and are often competitive with fixed deposits. The effective net yield on a 182-day T-bill at 14.5% discount rate is approximately 12.5% p.a. after the 20% WHT — significantly higher than most savings accounts. T-bills are also risk-free, unlike placing money in a bank which carries some counterparty risk. The trade-off is that T-bills have a fixed maturity date, while savings accounts allow instant access.
What happens when my T-bill matures — how do I roll it over?
At maturity, BOU credits the net face value (after WHT) to your CSD account and the linked bank account. To roll over, you simply submit a new bid at the next available T-bill auction. There is no automatic reinvestment. Many investors roll over repeatedly, using each maturity payment as the next investment. If you invest through a fund manager or platform like Xeno, rollover can be automated.