How to Invest in Uganda Govt Bonds as a Kenyan

As investors search for opportunities beyond their home markets, investing in foreign government bonds is one option worth considering.

The Bank of Uganda has, over the years, allowed foreign investors to participate in its Treasury Bills and Treasury Bonds market. As of March 2026, foreign investors held approximately Ksh3.8 billion (UGX116 billion)  in Treasury Bills and about Ksh411 billion (UGX12.2 trillion) in government bonds.

These securities allow investors to lend money to the Ugandan government in exchange for regular interest payments and the return of their principal upon maturity.

Also Read: Frequently Asked Questions About Treasury Bonds

Investment requirements for Investors

Foreign investors are required to open a Central Securities Depository (CSD) account with the Bank of Uganda through a participating commercial bank.

Once the account is opened, investors can participate in government securities auctions in the same way as local investors.

Opening a CSD Account in Uganda 

The first step is opening a Central Securities Depository (CSD) account, which serves as the holding account for your government securities.

Applications are submitted through a commercial bank in Uganda that participates in the government securities market.

You will typically be required to provide:

1. Full names
2. Passport or national identification details
3. Tax Identification Number, which can be issued to foreigners by the Uganda Revenue Authority.
4. Postal and physical address
5. Telephone number and email address
6. Passport-size photograph
7. Settlement bank account details

The settlement account is important because this is where interest payments and principal repayments will be deposited.

Also Read: Can Bonds Pay Your Rent? How Much Investment You Need to Earn Between Ksh15K & Ksh30K Per Month

Participating in Bonds and T-Bills

Similar to Kenya, Uganda offers two main types of government securities.

Treasury Bills are short-term investments with maturities of 91 days, 182 days and 364 days. As of March 2026, the average interest rates for T-Bills range between 10.38% and 12%

On the other hand, Treasury Bonds are longer-term investments with maturities ranging from 2-15 years. The interest rates for the Bonds in 2026 ranged between 13.50% to 16.29%.

Government securities in Uganda are sold through auctions conducted by the Bank of Uganda.

Once an auction is announced, investors submit bids through their commercial banks.

If a bid is accepted, one is required to transfer the investment amount through the settlement bank that was recorded when opening a CSD account.

Once payment is received, the securities are credited to the investor’s CSD account.

The minimum investment amounts for bonds and T-Bills are Ksh3,349 (UGX100,000) for non-competing bids and Ksh6.7 million (UGX200,100,000) for competitive bids.

Also Read: CSD vs CDS: Two Accounts You Need to Invest in Shares and Bonds

Interest Payments

Treasury Bonds pay periodic interest after every 6 months throughout the life of the investment.

Treasury Bills work differently. They are typically sold at a discount and redeemed at face value upon maturity, allowing investors to earn a return from the difference between the purchase price and the maturity value.

Interest and principal repayments are credited directly to the bank account linked to the CSD account.

Interest earned on Uganda government securities is taxed at source through a Withholding Tax of 20% for maturities under 10 years and 10% for maturities of 10 years or more. 

Things to consider before investing

Before investing in Uganda government securities, Kenyan investors should consider several factors:

Exchange rate risk: Returns earned in Uganda shillings may be affected by movements between the Ugandan and Kenyan currencies.

Cross-border banking costs: Transferring money into and out of Uganda may attract charges.

Investment horizon: Treasury Bonds can lock up funds for several years.

Tax considerations: Investors should understand the withholding tax obligations before investing.