How Treasury Bills Work in Kenya:

 How T-Bills Work in Kenya:

• T-Bills are sold at a discount to their face value and redeemed at face value upon maturity.For example, a Ksh.100,000 T-Bill might be sold for Ksh.90,000. At maturity, the investor receives the full Ksh.100,000.The return is subject to a 15% withholding tax.
• Auction Frequency:T-Bills are auctioned by the Central Bank of Kenya on a weekly basis.Purpose of Government Issuing T-Bills:The government issues T-Bills to raise funds for various projects, which is part of its domestic borrowing strategy.
• In summary, while both Treasury Bills and Treasury Bonds offer fixed returns, they differ in terms of their structure, investment duration, and frequency of issuance. Treasury Bills are typically for short-term financing, while Treasury Bonds are for longer-term projects