Kenya Treasury bills · auction of 3 July 2017
Kenya T-bill auction, 3 July 2017: 91-day at 8.284%, down 3 bps
At the Treasury bill auction dated 3 July 2017, the Central Bank of Kenya cleared the 91-day bill at 8.284% (down 3 basis points), the 182-day bill at 10.329% (up 2 basis points) and the 364-day bill at 10.895% (up 3 basis points).
The auction was undersubscribed: bids totalled KES 17.5bn against KES 24.0bn on offer, a subscription rate of 73%. The government accepted KES 17.1bn, or 97% of what was bid.
The 182-day paper drew the most interest relative to its size, at 101% subscribed.
Over the past year the 91-day rate has ranged from 7.027% to 8.779%.
What this means for KES 100,000
Worked from the published rate · information, not advice
KES 9,261 in 12 months on the 364-day bill, after tax
Put KES 100,000 into the 364-day bill at this auction and you get back KES 109,261 after 12 months: KES 9,261 in interest after 15% withholding tax (KES 10,895 before), about KES 772 a month.
That is KES 23 more than the same money would have earned at the previous auction.
For shorter money: KES 4,390 on the 182-day bill (6 months), KES 1,760 on the 91-day bill (3 months).
The Central Bank’s minimum bid is KES 100,000, and the government pays the full amount at maturity; the risk is Kenya’s government not paying, and the money is locked until then.
Kwa Kiswahili
Ukiweka KES 100,000 kwenye hati ya siku 364 kwa riba ya mnada huu, utarudishiwa KES 109,261 baada ya miezi 12: riba ya KES 9,261 baada ya kodi ya zuio ya 15% (KES 10,895 kabla ya kodi), yaani takriban KES 772 kwa mwezi.
Hiyo ni KES 23 zaidi ya kiasi ambacho pesa hiyo hiyo ingepata kwenye mnada uliopita.
Kiwango cha chini cha Benki Kuu ni KES 100,000. Serikali hulipa yote mwishoni mwa muda; hatari ni serikali kushindwa kulipa, na pesa haipatikani hadi muda uishe.
Compare with money market funds and bank deposits, after tax →
Results
By tenor
| Tenor | Rate | Previous | Offered | Bids | Subscription | Accepted | Price /100 |
|---|---|---|---|---|---|---|---|
| 91-day | 8.284% | 8.310% | KES 4.00bn | KES 2.31bn | 58% | KES 2.31bn | 97.976 |
| 182-day | 10.329% | 10.314% | KES 10.00bn | KES 10.06bn | 101% | KES 9.71bn | 95.102 |
| 364-day | 10.895% | 10.868% | KES 10.00bn | KES 5.17bn | 52% | KES 5.05bn | 90.200 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
Free, every weekday at 7:00
The Afronomics Morning
Every Monday: the week's auctions, currencies and the stories that moved African markets. Free.