Bank of Uganda floats Shs350b Treasury bills in August 5 auction

KAMPALA. The Bank of Uganda (BoU) will on Wednesday, August 5, 2026m auction Treasury Bills worth Shs350 billion, with the government seeking to raise most of the funds through one-year securities as it continues to finance budget operations and manage domestic debt.

According to a Treasury Bills invitation issued by the central bank, the auction will offer three maturities—91 days, 182 days and 364 days—with the bulk of the borrowing concentrated in the one-year instrument.

The auction comprises Shs15 billion in 91-day Treasury Bills, Shs35 billion in 182-day securities and Shs300 billion in 364-day Treasury Bills, bringing the total amount on offer to Shs350 billion.

The auction is scheduled for Wednesday, August 5, while successful investors will settle their purchases on Thursday, August 6. The securities will mature between November 2026 and August 2027, depending on the tenor selected.

The latest issuance comes as government continues to rely on the domestic debt market to finance part of its expenditure while providing investors with short-term investment opportunities backed by the State.

Under the auction arrangements, only licensed Primary Dealer (PD) banks will be permitted to submit competitive bids directly to the central bank through the Central Securities Depository (CSD). Other investors will participate through commercial banks by submitting non-competitive bids.

Bank of Uganda said Primary Dealer banks and other commercial banks must submit all bids electronically through the CSD by 10am on Wednesday.

The central bank has set the minimum competitive bid at Shs200.1 million, while non-competitive bids can be made from as little as Shs100,000, allowing retail investors to participate in the auction through their commercial banks.

According to the auction guidelines, non-competitive bids of up to Shs200 million for each maturity will be accepted in full at the auction’s cut-off price.

BoU said all successful bidders, whether competitive or non-competitive, will receive securities at a single price—the lowest accepted auction price, which corresponds to the highest accepted yield.

The central bank also reserved the right to increase or reduce the amount offered during the auction and to accept or reject applications either in whole or in part, depending on market conditions and government financing requirements.

The auction will be conducted under the Public Finance Management Act, 2015, which governs the issuance of government securities.

Treasury Bills remain one of the government’s principal domestic borrowing instruments and are widely used by commercial banks, institutional investors and individuals seeking low-risk, short-term investments.

The allocation of Shs300 billion to the 364-day Treasury Bill—representing about 86 percent of the total amount on offer—signals continued preference for longer-dated short-term securities in the government’s domestic borrowing programme.

The remaining Shs50 billion has been allocated to the shorter-term 91-day and 182-day instruments, which are commonly used by investors seeking greater liquidity over a shorter investment horizon.

The central bank noted that only the country’s designated Primary Dealer banks are authorised to submit competitive bids into the auction. These include Absa Bank Uganda, Citibank Uganda, Centenary Bank, dfcu Bank, Equity Bank Uganda, Housing Finance Bank, Stanbic Bank Uganda and Standard Chartered Bank Uganda.

Investors who do not qualify as Primary Dealers can still participate by submitting applications through any commercial bank under the non-competitive bidding arrangement.

The Treasury Bills auction notice was published by the Bank of Uganda on July 30 ahead of the scheduled sale.