Kenya Treasury bills · auction of 4 November 2019
Kenya T-bill auction, 4 November 2019: 91-day at 6.390%, down 3 bps
At the Treasury bill auction dated 4 November 2019, the Central Bank of Kenya cleared the 91-day bill at 6.390% (down 3 basis points), the 182-day bill at 7.189% (down 3 basis points) and the 364-day bill at 9.780% (unchanged).
The auction was fully subscribed: bids totalled KES 27.4bn against KES 24.0bn on offer, a subscription rate of 114%. The government accepted KES 23.7bn, or 87% of what was bid.
The 91-day paper drew the most interest relative to its size, at 170% subscribed.
Over the past year the 91-day rate has ranged from 6.307% to 7.697%.
What this means for KES 100,000
Worked from the published rate · information, not advice
KES 8,313 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 108,313 after 12 months: KES 8,313 in interest after 15% withholding tax (KES 9,780 before), about KES 693 a month.
That is the same as at the previous auction.
For shorter money: KES 3,055 on the 182-day bill (6 months), KES 1,358 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 108,313 baada ya miezi 12: riba ya KES 8,313 baada ya kodi ya zuio ya 15% (KES 9,780 kabla ya kodi), yaani takriban KES 693 kwa mwezi.
Ni sawa na 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 | 6.390% | 6.424% | KES 4.00bn | KES 6.81bn | 170% | KES 6.81bn | 98.432 |
| 182-day | 7.189% | 7.223% | KES 10.00bn | KES 4.61bn | 46% | KES 4.13bn | 96.539 |
| 364-day | 9.780% | 9.780% | KES 10.00bn | KES 16.00bn | 160% | KES 12.78bn | 91.114 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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