Kenya Treasury bills · auction of 25 November 2019
Kenya T-bill auction, 25 November 2019: 91-day at 7.131%, up 45 bps
At the Treasury bill auction dated 25 November 2019, the Central Bank of Kenya cleared the 91-day bill at 7.131% (up 45 basis points), the 182-day bill at 8.215% (up 44 basis points) and the 364-day bill at 9.804% (up 2 basis points).
The auction was undersubscribed: bids totalled KES 13.5bn against KES 24.0bn on offer, a subscription rate of 56%. The government accepted KES 11.9bn, or 88% of what was bid.
The 91-day paper drew the most interest relative to its size, at 93% 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 8,333 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 108,333 after 12 months: KES 8,333 in interest after 15% withholding tax (KES 9,804 before), about KES 694 a month.
That is KES 17 more than the same money would have earned at the previous auction.
For shorter money: KES 3,491 on the 182-day bill (6 months), KES 1,515 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 108,333 baada ya miezi 12: riba ya KES 8,333 baada ya kodi ya zuio ya 15% (KES 9,804 kabla ya kodi), yaani takriban KES 694 kwa mwezi.
Hiyo ni KES 17 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 | 7.131% | 6.680% | KES 4.00bn | KES 3.71bn | 93% | KES 3.71bn | 98.253 |
| 182-day | 8.215% | 7.774% | KES 10.00bn | KES 3.85bn | 38% | KES 3.37bn | 96.065 |
| 364-day | 9.804% | 9.784% | KES 10.00bn | KES 5.92bn | 59% | KES 4.84bn | 91.094 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
Free, every weekday at 7:00
The Afronomics Morning
Every Monday: the week's auctions, currencies and the stories that moved African markets. Free.