Kenya Treasury bills · auction of 19 March 2018
Kenya T-bill auction, 19 March 2018: 91-day at 8.023%, unchanged
At the Treasury bill auction dated 19 March 2018, the Central Bank of Kenya cleared the 91-day bill at 8.023% (unchanged), the 182-day bill at 10.401% (up 2 basis points) and the 364-day bill at 11.128% (unchanged).
The auction was fully subscribed: bids totalled KES 33.6bn against KES 24.0bn on offer, a subscription rate of 140%. The government accepted KES 28.9bn, or 86% of what was bid.
The 364-day paper drew the most interest relative to its size, at 196% 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 the same as at the previous auction.
For shorter money: KES 4,420 on the 182-day bill (6 months), KES 1,705 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.
Ni sawa na 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 | 8.023% | 8.026% | KES 4.00bn | KES 2.55bn | 64% | KES 1.87bn | 98.039 |
| 182-day | 10.401% | 10.385% | KES 10.00bn | KES 11.42bn | 114% | KES 8.46bn | 95.069 |
| 364-day | 11.128% | 11.128% | KES 10.00bn | KES 19.60bn | 196% | KES 18.61bn | 90.011 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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