Kenya Treasury bills · auction of 25 June 2018
Kenya T-bill auction, 25 June 2018: 91-day at 7.725%, down 10 bps
At the Treasury bill auction dated 25 June 2018, the Central Bank of Kenya cleared the 91-day bill at 7.725% (down 10 basis points), the 182-day bill at 9.666% (down 13 basis points) and the 364-day bill at 10.537% (down 17 basis points).
Demand was strong: bids totalled KES 51.5bn against KES 24.0bn on offer, a subscription rate of 215%. The government accepted KES 50.9bn, or 99% of what was bid.
The 364-day paper drew the most interest relative to its size, at 289% subscribed.
At 7.725%, the 91-day rate is the lowest in the 52 auctions of the past year.
What this means for KES 100,000
Worked from the published rate · information, not advice
KES 8,956 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 108,956 after 12 months: KES 8,956 in interest after 15% withholding tax (KES 10,537 before), about KES 746 a month.
That is KES 144 less than the same money would have earned at the previous auction.
For shorter money: KES 4,108 on the 182-day bill (6 months), KES 1,642 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 108,956 baada ya miezi 12: riba ya KES 8,956 baada ya kodi ya zuio ya 15% (KES 10,537 kabla ya kodi), yaani takriban KES 746 kwa mwezi.
Hiyo ni KES 144 pungufu 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 | 7.725% | 7.821% | KES 4.00bn | KES 5.46bn | 137% | KES 5.46bn | 98.110 |
| 182-day | 9.666% | 9.800% | KES 10.00bn | KES 17.15bn | 171% | KES 17.07bn | 95.402 |
| 364-day | 10.537% | 10.706% | KES 10.00bn | KES 28.92bn | 289% | KES 28.36bn | 90.491 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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