Kenya Treasury bills · auction of 17 September 2018
Kenya T-bill auction, 17 September 2018: 91-day at 7.642%, down 1 bps
At the Treasury bill auction dated 17 September 2018, the Central Bank of Kenya cleared the 91-day bill at 7.642% (down 1 basis point), the 182-day bill at 8.770% (down 11 basis points) and the 364-day bill at 9.735% (down 9 basis points).
Demand was strong: bids totalled KES 43.5bn against KES 24.0bn on offer, a subscription rate of 181%. The government accepted KES 26.0bn, or 60% of what was bid.
The 364-day paper drew the most interest relative to its size, at 191% subscribed.
Over the past year the 91-day rate has ranged from 7.608% to 8.130%.
What this means for KES 100,000
Worked from the published rate · information, not advice
KES 8,275 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 108,275 after 12 months: KES 8,275 in interest after 15% withholding tax (KES 9,735 before), about KES 690 a month.
That is KES 76 less than the same money would have earned at the previous auction.
For shorter money: KES 3,727 on the 182-day bill (6 months), KES 1,624 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 108,275 baada ya miezi 12: riba ya KES 8,275 baada ya kodi ya zuio ya 15% (KES 9,735 kabla ya kodi), yaani takriban KES 690 kwa mwezi.
Hiyo ni KES 76 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 | 7.642% | 7.649% | KES 4.00bn | KES 7.32bn | 183% | KES 7.31bn | 98.130 |
| 182-day | 8.770% | 8.876% | KES 10.00bn | KES 17.09bn | 171% | KES 7.27bn | 95.810 |
| 364-day | 9.735% | 9.825% | KES 10.00bn | KES 19.07bn | 191% | KES 11.43bn | 91.151 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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