What is a Treasury bill?
A Treasury bill (T-bill) is short-term government debt; typically 35, 91, 182 or 364 days; sold at a discount at Bank of Tanzania auctions. You lend the government money and get a fixed, known return at maturity. Recent auctions saw the weighted-average yield compress to roughly ⚠5.7% amid heavy oversubscription; verify the latest at BoT T-bill results.
What is dividend income?
Dividend income is the cash a listed company pays out of profits to shareholders. Unlike a T-bill, it isn't fixed or guaranteed; but it can grow over time, and you also gain (or lose) on the share price.
Which is "better" for income?
Neither is universally better; they suit different needs and risk appetites. Many investors blend them: T-bills/bonds for the certain, defensive core, and dividend shares for growth and inflation protection. The right mix depends on your time horizon, your need for certainty, and how much price volatility you can tolerate.
A useful habit: compare the T-bill/bond yield with the dividend yield you'd get from a quality share. When the risk-free yield is low, the case for dividend payers strengthens; when it's high, the "safe" option pays you well to wait. We unpack that comparison in Dividend yields vs the bond.
A word on tax and fees
Returns are before tax and costs. The DSE FAQ, checked 6 August 2026, states that maximum total brokerage fees are 2.3768% of the consideration; government securities have their own cost and tax treatment. Check the current rules and obtain an itemised quote; they affect the net income you keep.