What T-bills and bonds are

When you buy a Treasury bill or bond, you are lending money to the Government of Kenya. The Central Bank of Kenya (CBK) runs the sales on behalf of the government.

• Treasury bills are short loans: 91, 182 or 364 days.
• Treasury bonds are longer loans: from about 2 years to 25 years or more, and they pay interest twice a year.

Because the government stands behind them, they are seen as among the lowest-risk investments in Kenya. The trade-off is that your money is committed until the bill or bond matures.