Kenya Treasury bills · auction of 15 July 2019
Kenya T-bill auction, 15 July 2019: 91-day at 6.600%, down 8 bps
At the Treasury bill auction dated 15 July 2019, the Central Bank of Kenya cleared the 91-day bill at 6.600% (down 8 basis points), the 182-day bill at 7.469% (up 7 basis points) and the 364-day bill at 8.646% (up 4 basis points).
Demand was strong: bids totalled KES 44.1bn against KES 24.0bn on offer, a subscription rate of 184%. The government accepted KES 44.1bn, or 100% of what was bid.
The 364-day paper drew the most interest relative to its size, at 298% subscribed.
At 6.600%, 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 7,349 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 107,349 after 12 months: KES 7,349 in interest after 15% withholding tax (KES 8,646 before), about KES 612 a month.
That is KES 31 more than the same money would have earned at the previous auction.
For shorter money: KES 3,174 on the 182-day bill (6 months), KES 1,403 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 107,349 baada ya miezi 12: riba ya KES 7,349 baada ya kodi ya zuio ya 15% (KES 8,646 kabla ya kodi), yaani takriban KES 612 kwa mwezi.
Hiyo ni KES 31 zaidi 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 | 6.600% | 6.685% | KES 4.00bn | KES 3.24bn | 81% | KES 3.24bn | 98.381 |
| 182-day | 7.469% | 7.397% | KES 10.00bn | KES 11.11bn | 111% | KES 11.11bn | 96.409 |
| 364-day | 8.646% | 8.610% | KES 10.00bn | KES 29.77bn | 298% | KES 29.77bn | 92.062 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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