Kenya Treasury bills · auction of 3 September 2018
Kenya T-bill auction, 3 September 2018: 91-day at 7.658%, up 4 bps
At the Treasury bill auction dated 3 September 2018, the Central Bank of Kenya cleared the 91-day bill at 7.658% (up 4 basis points), the 182-day bill at 8.950% (down 3 basis points) and the 364-day bill at 9.906% (down 4 basis points).
Demand was strong: bids totalled KES 42.3bn against KES 24.0bn on offer, a subscription rate of 176%. The government accepted KES 32.9bn, or 78% of what was bid.
The 91-day paper drew the most interest relative to its size, at 290% subscribed.
Over the past year the 91-day rate has ranged from 7.608% to 8.134%.
What this means for KES 100,000
Worked from the published rate · information, not advice
KES 8,420 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 108,420 after 12 months: KES 8,420 in interest after 15% withholding tax (KES 9,906 before), about KES 702 a month.
That is KES 30 less than the same money would have earned at the previous auction.
For shorter money: KES 3,804 on the 182-day bill (6 months), KES 1,627 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 108,420 baada ya miezi 12: riba ya KES 8,420 baada ya kodi ya zuio ya 15% (KES 9,906 kabla ya kodi), yaani takriban KES 702 kwa mwezi.
Hiyo ni KES 30 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 | 7.658% | 7.614% | KES 4.00bn | KES 11.58bn | 290% | KES 11.58bn | 98.127 |
| 182-day | 8.950% | 8.983% | KES 10.00bn | KES 9.00bn | 90% | KES 6.66bn | 95.728 |
| 364-day | 9.906% | 9.941% | KES 10.00bn | KES 21.69bn | 217% | KES 14.64bn | 91.009 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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