There are many options available for your chama to invest the collected funds. In weighing one’s options, can the group diversify its portfolio and spread out the risks. Treasury Bills (T-Bills) and Treasury Bonds (T-Bonds) are fairly secure investments that are issued by the government.

T-bills are a form of government debt, in that investors – you as the buyer (or chama) are essentially lending money to the government. T-bonds are units of government debt, meaning that you are investing in the Kenyan Government.

In Kenya, Treasury Bills have a fairly short term, and mature in 91, 182 or 364 days, so you will receive your returns within three, six or 12 months. Treasury Bonds on the other hand have a long period, with a fixed term of between 2 to 30 years. In this time government is obligated to repay the principal as well as the interest. However, most T-bonds carry semi-annual interest payments, allowing investors to receive returns every six months.

The minimum investment amount of a T-Bond is typically Kshs 50,000. T-Bills fluctuate weekly and one has to log into the CBK site to see what is currently on offer for purchase.

For your group or chama to enjoy these government investment options it has to be fully registered. Following this you need to open a CBK DhowCSD account via Mobile app or Web Portal. With this account your chama can now decide how you want to invest. Once you have chosen which bid you would like to invest in, your chama then needs to complete and submit its bids within the DhowCSD portal. Then you will have to wait for CBK to process the bid and approve. Once approved, you will then be required to make the necessary payments for it.

Investing in government bonds is beneficial as they provide a steady income. They provide a consistent stream of income for your chama, ensuring regular payments at fixed intervals. Both T-bonds and T-bills are government-backed securities. As such, both are conservative investment strategies, offering a unique combination of safety and predictability that few other investments can match.