Treasury Bills in Tanzania: Rates, Returns and Risks

A Treasury bill is a short-term loan from an investor to the Government of Tanzania. Treasury bills in Tanzania are sold below their maturity value, and the investor receives the face value when the bill matures. Auction yields change, so every rate must be read with its maturity and auction date.

Latest auction data used: 9 September 2026. Rates are not fixed between auctions.

What a Treasury bill is

The Bank of Tanzania issues Treasury bills on behalf of the government to raise short-term funding and manage liquidity. Unlike a Treasury bond, a bill matures in less than one year and does not make regular coupon payments.

The BoT Government Domestic Debt page lists four maturities and a minimum bid of TZS 500,000, followed by multiples of TZS 10,000.

Available Treasury-bill maturity	Approximate description
35 days	About five weeks
91 days	About three months
182 days	About six months
364 days	About one year

Residents of East African Community countries can participate through the auction system, according to the BoT financial-markets page. Bids pass through a Central Depository Participant, such as an eligible bank or broker. The next article explains the practical route in How to Buy a Government Bond in Tanzania.

How the discount creates the return

A Treasury bill is quoted at a discount. This means the purchase price is below the amount paid at maturity. The difference is the gross gain before applicable tax and transaction costs.

This fictional example shows the cash movement without using a yield formula:

Illustrative 364-day bill	TZS
Face value paid at maturity	500,000
Illustrative purchase price	470,000
Gross difference at maturity	30,000

The investor pays TZS 470,000 and, if the government obligation is held through maturity and paid as scheduled, receives TZS 500,000. The TZS 30,000 is not a promise or a current auction quote. An accepted auction yield determines the actual price, while tax and service charges can reduce the net amount retained.

Do not confuse the maturity value with the amount available today. Money committed to the bill is no longer emergency cash. Build an emergency fund before locking money into a fixed term.

What the official auctions actually show

The original article brief said yields rose from 9–10% in October 2025 to 11–12% in January 2026. The official BoT Treasury Bills Auction Results archive does not support that statement.

Auction date	35-day yield	91-day yield	182-day yield	364-day yield
8 October 2025, auction 1185	6.1261%	6.5261%	6.8144%	5.6088%
7 January 2026, auction 1190	5.2436%	5.7120%	5.8224%	6.1904%
21 January 2026, auction 1191	5.4670%	5.7574%	5.8863%	6.2321%

These are weighted average yields for successful bids, not an offer available every day. They also differ by maturity. A headline that combines them into one permanent “Treasury-bill rate” removes information a reader needs.

Latest published result reviewed

In the Treasury-bill auction of 9 September 2026, BoT reported weighted average yields of 2.29% for 35 days, 3.42% for 91 days, 4.92% for 182 days and 6.47% for 364 days. Against the original brief’s “11–12%” claim, the one-year yield has roughly halved.

Rates move, and this matters for how you plan. The yield you accept at auction is fixed for that bill until it matures — the rate you buy at is the rate you keep. But when the bill matures, the next auction may pay less, as the fall through 2025 and 2026 shows. That is why a rate belongs in the body with its date, never in a permanent headline.

Always open the latest result before making a decision. This update box can become outdated even when the explanation of discount pricing remains correct.

What oversubscription means for a small bidder

An auction is oversubscribed when the value of bids exceeds the amount offered. It shows strong demand at the submitted prices; it does not show that every bidder earned a high return.

The two January 2026 auctions do not support a simple “about 50% oversubscribed” statement. Auction 1190 received about TZS 308.6 billion of bids against TZS 174.9 billion offered, approximately 76.4% more than offered. Auction 1191 received about TZS 205.5 billion against TZS 214.9 billion offered, making that auction about 4.4% undersubscribed. Combined, January bids were about 31.9% above the combined offered amount.

A more heavily subscribed recent auction, 1203 in July 2026, received TZS 653.0 billion of bids against TZS 289.6 billion offered. That was about 125.5% more than the offer.

For a small bidder, the practical lesson is that submitting a bid does not guarantee the requested allocation. Competitive and non-competitive tenders follow different auction rules, and the accepted price matters. Ask the Central Depository Participant to explain the current bidding route, possible allocation outcome and all charges before submitting money.

The risks still matter

Treasury bills are government securities, but “government-issued” does not make every use of them risk-free for your household.

• Inflation risk: prices may rise faster than the net gain, reducing what the maturity money can buy.
• Liquidity risk: holding to maturity gives a known date, but money is unavailable for daily needs in the meantime. BoT says securities can trade in the secondary market, yet an early sale depends on market access and price.
• Reinvestment risk: the next auction may offer a lower yield when the bill matures.
• Allocation risk: high demand can mean a bid is not accepted as requested.
• Operational risk: incorrect account, bid or payment details can delay the process.

A bank deposit and a Treasury bill are not interchangeable. They can differ in withdrawal access, term, pricing, fees and legal protections. Compare their documented features against the date when you need the money; JengaWealth does not recommend switching from one to the other.

What to do next

• Keep emergency and near-term spending money separate.
• Check the latest auction result and issuance calendar on the BoT website.
• Confirm the maturity, minimum bid, bidding route, taxes and charges with the participant handling the bid.
• Ask how a competitive or non-competitive tender affects price and allocation.
• Save the tender instruction, payment record and allocation confirmation.
• Read the Money Words dictionary when a term is unfamiliar.

Frequently asked questions

What is a Treasury bill in Tanzania?

It is a short-term government security issued through BoT, normally sold below face value and paid at face value at maturity.

What Treasury-bill maturities does BoT offer?

BoT currently lists 35, 91, 182 and 364 days. Check the current auction notice because the issuance schedule can change.

Does an investor receive monthly interest?

No. A Treasury bill has no regular coupon. The gross gain comes from the difference between its discounted purchase price and maturity value.

Are Treasury-bill yields always 11–12%?

No. Official January 2026 results reviewed here were approximately 5.24–6.23%, and the 9 September 2026 auction ranged from about 2.29% to 6.47% across maturities. Yields move between auctions.

Does oversubscription mean my bid will fail?

Not automatically. It means total demand exceeded the offer. Allocation depends on the tender type, bid terms and auction outcome.