These are short term debt instruments issued by the government through the central bank.
Features of Treasury Bills
- They are issued at a discount.
- They are used as a measure of the risk free rate of return.
- They can be used mob-up excess liquidity in the economy and control initiation.
- They enable the government to borrow from the public
- The minimum investment in treasury bills is 100,000 shillings.
Difference between Treasury Bills and Treasury Bonds
| Treasury Bills | Treasury Bonds |
| 1. Minimum investment is shs. 100,000
2. Short term debt instruments 3. Are issued at a discount. 4. They are not transferable. 5. Interest on T. Bills is lower than on T. bonds |
1. Minimum investment is shs. 50,000.
2. Long term debt instruments 3. Are issued at par or face value. 4. They are transferable 5. Interest on T. Bonds is a premium higher than T. bills |
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