Kenya Treasury bills · auction of 3 December 2018
Kenya T-bill auction, 3 December 2018: 91-day at 7.342%, unchanged
At the Treasury bill auction dated 3 December 2018, the Central Bank of Kenya cleared the 91-day bill at 7.342% (unchanged), the 182-day bill at 8.242% (unchanged) and the 364-day bill at 9.564% (down 1 basis point).
The auction was undersubscribed: bids totalled KES 18.2bn against KES 24.0bn on offer, a subscription rate of 76%. The government accepted KES 17.3bn, or 95% of what was bid.
The 91-day paper drew the most interest relative to its size, at 270% subscribed.
At 7.342%, 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 8,129 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 108,129 after 12 months: KES 8,129 in interest after 15% withholding tax (KES 9,564 before), about KES 677 a month.
That is KES 5 less than the same money would have earned at the previous auction.
For shorter money: KES 3,503 on the 182-day bill (6 months), KES 1,560 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 108,129 baada ya miezi 12: riba ya KES 8,129 baada ya kodi ya zuio ya 15% (KES 9,564 kabla ya kodi), yaani takriban KES 677 kwa mwezi.
Hiyo ni KES 5 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 | 7.342% | 7.342% | KES 4.00bn | KES 10.79bn | 270% | KES 10.30bn | 98.202 |
| 182-day | 8.242% | 8.245% | KES 10.00bn | KES 4.82bn | 48% | KES 4.34bn | 96.053 |
| 364-day | 9.564% | 9.570% | KES 10.00bn | KES 2.61bn | 26% | KES 2.61bn | 91.293 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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