August 30, 2016   by

How your Chama can invest in T-bonds and T-Bills

Chama experiences various challenges in handling money. Most groups work on high self-assurance and in the case of problems, money recovery gets to be troublesome. To avoid the very nature of extortion and deceptive members, a Chama leader can make an individual short-term investment decision as they await consensus among members. Treasury bills and treasury bonds are the best options to avert any loss within the group.

                                                                                     Treasury bills

bonds and funds

Investing in treasury bills is actually a loan an individual gives to the Kenya government through the Central Bank. A Chama can register formally as a recognized institution and venture into treasury bills. The government promises to pay back with interest after a certain period. The government will always pay, so any group investment is risk-free.

How to invest in the T-bill


To invest in treasury bills in Kenya, the Chama leaders must open a CDS Account with the Central Bank of Kenya.

Amount to invest

The group will need a minimum of Sh100, 000 to invest in treasury bills in Kenya. Any higher amount must be in multiples of Sh50, 000.

Investment Period

The investment period is 3 months, 6 months, or 1 year and rates vary from about 8% – 10% per year and are normally published in the local dailies.

Treasury Bonds

Just like treasury bills, treasury bonds are also issued by the government to raise money. Again, like in treasury bills, you cannot lose your money.


The treasury bills are longer-term instruments over 1 year.

Investment amount

The minimum investment amount is Sh50, 000.


In comparison to treasury bills, the returns are low.


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