By KT Reporter
The Bank of Uganda (BoU) is inviting investors to buy Shs355 billion in Government Treasury Bills to help fund the country’s growth plans. The auction, happening on Wednesday, September 24, offers a safe and profitable way for people and businesses to invest while supporting Uganda’s economy.
The Treasury Bills come in three types: Shs25 billion for 91 days, maturing on December 25, 2025; Shs75 billion for 182 days, due on March 26, 2026; and Shs255 billion for 364 days, maturing on September 24, 2026. Bids must be submitted through the Central Securities Depository (CSD) by 10:00 a.m. on September 24. Big banks like ABSA, Citi, Centenary, dfcu, Equity, Housing Finance, Stanbic, and Standard Chartered known as Primary Dealers can place competitive bids starting at Shs200.1 million. Regular investors can join through any commercial bank with a minimum of Shs100,000, and bids up to Shs200 million will be accepted at the lowest price set in the auction. All successful bids get the same price, based on the highest accepted yield. The BoU can adjust the amount offered or reject bids if needed.
This auction supports Uganda’s plan to grow its economy, as outlined in the 2025/26 budget. On June 12, 2025, Finance Minister Matia Kasaija told the nation during his budget speech, “We expect to raise Shs31.9 trillion in revenue, but we’ll spend Shs51.53 trillion. Treasury Bills help us bridge that gap and fund our growth strategy.” He emphasized using these funds wisely to support projects like roads and power plants, aiming to grow Uganda’s economy from $61.3 billion to $500 billion in 15 years. On April 15, 2025, at a global finance meeting, Kasaija added, “Our oil resources are key, but we must borrow smartly through tools like Treasury Bills to keep our economy stable.”
BoU Governor Michael Atingi-Ego, speaking at a monetary policy update on August 20, 2025, said, “Treasury Bills and bonds keep our financial system strong and help control inflation while funding big projects like the Karuma Hydropower Project.” His comments highlight how these bills manage money supply and support major developments, making them a win-win for investors and the government.
Economists are excited about the auction. With Uganda’s economy expected to grow by 6.2% in 2025, according to the World Bank, these bills offer better returns than regular savings accounts, which pay 5-7%. “This is a chance for everyone, from small savers to big funds, to invest in Uganda’s future,” said Dr. Sarah Nakato, an economist at Makerere University. The bills are especially attractive as Uganda’s trade deficit shrinks to 7.9% of GDP, signaling economic strength.
However, challenges remain. Kasaija noted in his June 2025 speech that rising global interest rates could push yields up, which might affect investor interest. Still, with oil money coming soon, confidence is high. Full details are on the BoU website (www.bou.or.ug). Investors have until tomorrow to bid and be part of Uganda’s economic journey.
-UBC. Give us feedback on this story through our email: kamwokyatimes@gmail.com
