Kenyan savers who want more than a bank savings account usually end up choosing between two things: government Treasury bills and shares on the Nairobi Securities Exchange. They are very different, and knowing how they compare will help you decide where each shilling belongs.
What is a Treasury bill?
A Treasury bill (T-bill) is a short-term loan to the Government of Kenya, sold by the Central Bank of Kenya (CBK). You lend for 91, 182 or 364 days and get back a fixed amount at the end.
T-bills are sold at a discount: you pay less than the face value today and receive the full face value when the bill matures. The difference is your interest.
In late August 2026, T-bills were paying roughly 8.8% (91-day), 8.9% (182-day) and 9.0% (364-day) a year. Ipahco’s Markets page shows the latest rates from the CBK’s own auction results.
What is a share?
A share is part-ownership of a company listed on the NSE. Your return comes from dividends and from the share price rising — neither of which is guaranteed. See how to buy shares on the NSE if you’re starting out.
Side by side
| Treasury bills | NSE shares | |
|---|---|---|
| Return | Fixed and known when you buy | Unknown — dividends plus price change |
| Risk of losing money | Very low — backed by the government | Real — prices can fall and stay down |
| Tax | 15% withholding tax on the interest (final for resident individuals) | 5% withholding tax on dividends; no capital gains tax on listed shares |
| Minimum through CBK | KES 50,000 face value | The price of one share, plus fees |
| Getting your money out | At maturity (91–364 days); selling early is possible but not simple | Sell any trading day — if there are buyers |
| Costs | No brokerage when bought directly from CBK | About 1.5–2% per buy and per sell (fees explained) |
The T-bill rate is the bar every share has to beat
This is the most useful idea in this guide. If the government will pay you about 9% a year with almost no risk, a share only makes sense if you expect it to return more than that — enough extra to make up for the risk you’re taking.
So when you look at a share, ask:
- Is the dividend yield alone close to the T-bill rate? (A 4% dividend yield needs strong price growth to beat a 9% T-bill.)
- Do I expect the company to grow enough to make up the difference?
- Am I being paid enough extra to accept that the price could fall?
This comparison is called the risk-free rate, and it’s why Ipahco puts the latest T-bill rates at the top of the Markets page — every share on the exchange is competing with it.
When T-bills make more sense
- Money you’ll need within a year — school fees, rent, a planned purchase.
- Your emergency fund.
- When you can’t accept any chance of losing part of your money.
When shares make more sense
- Money you won’t need for five years or more, so you can ride out bad years.
- When you want your money to grow faster than inflation over the long run.
- When you’re prepared to research companies and hold through price drops.
Why not both?
Many investors split their money: T-bills (or money market funds) for safety and short-term needs, and a spread of NSE shares for long-term growth. How you split depends on your age, income, goals and how you’d feel watching a share fall 20%.
How to buy each
- T-bills: register for a free account on the CBK’s DhowCSD platform (web or app) and bid at the weekly auction without a middleman, or buy through your bank or broker. Results are published on Thursdays and payment is due by 2 pm on the settlement date.
- Shares: open a CDS account with a licensed stockbroker — see how to open a CDS account — or use an app such as Ziidi Trader.
Frequently asked questions
Are Treasury bills risk-free?
They are about as safe as a Kenyan-shilling investment gets, because they are backed by the government. That is why their rate is used as the “risk-free rate”.
Can I lose money in NSE shares?
Yes. Share prices can fall below what you paid, and companies can cut dividends.
Which pays more over the long term?
Historically, shares have the potential to beat T-bills over long periods, but there are also long stretches when they don’t. T-bills give you certainty; shares give you a chance of more, with risk.
What is the minimum to invest in T-bills?
KES 50,000 face value when you bid directly through the CBK’s DhowCSD platform. Money market funds let you invest smaller amounts in similar short-term government paper indirectly.
Rates quoted are from late August 2026 and change weekly — check the latest before investing. This guide is for education only and is not investment advice.
