Kenya Treasury bills · auction of 25 December 2017
Kenya T-bill auction, 25 December 2017: 91-day at 8.005%, unchanged
At the Treasury bill auction dated 25 December 2017, the Central Bank of Kenya cleared the 91-day bill at 8.005% (unchanged), the 182-day bill at 10.583% (up 5 basis points) and the 364-day bill at 11.128% (up 4 basis points).
The auction was undersubscribed: bids totalled KES 20.4bn against KES 24.0bn on offer, a subscription rate of 85%. The government accepted KES 18.5bn, or 91% of what was bid.
The 364-day paper drew the most interest relative to its size, at 105% subscribed.
Over the past year the 91-day rate has ranged from 8.001% to 8.779%.
What this means for KES 100,000
Worked from the published rate · information, not advice
KES 9,459 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 109,459 after 12 months: KES 9,459 in interest after 15% withholding tax (KES 11,128 before), about KES 788 a month.
That is KES 35 more than the same money would have earned at the previous auction.
For shorter money: KES 4,498 on the 182-day bill (6 months), KES 1,701 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 109,459 baada ya miezi 12: riba ya KES 9,459 baada ya kodi ya zuio ya 15% (KES 11,128 kabla ya kodi), yaani takriban KES 788 kwa mwezi.
Hiyo ni KES 35 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 | 8.005% | 8.001% | KES 4.00bn | KES 0.91bn | 23% | KES 0.66bn | 98.043 |
| 182-day | 10.583% | 10.529% | KES 10.00bn | KES 8.91bn | 89% | KES 8.23bn | 94.988 |
| 364-day | 11.128% | 11.087% | KES 10.00bn | KES 10.55bn | 105% | KES 9.60bn | 90.011 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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