Kenya Treasury bills · auction of 30 December 2019
Kenya T-bill auction, 30 December 2019: 91-day at 7.200%, up 2 bps
At the Treasury bill auction dated 30 December 2019, the Central Bank of Kenya cleared the 91-day bill at 7.200% (up 2 basis points), the 182-day bill at 8.150% (up 3 basis points) and the 364-day bill at 9.815% (up 3 basis points).
The auction was undersubscribed: bids totalled KES 4.1bn against KES 24.0bn on offer, a subscription rate of 17%. The government accepted KES 4.1bn, or 100% of what was bid.
The 364-day paper drew the most interest relative to its size, at 35% 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 8,343 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 108,343 after 12 months: KES 8,343 in interest after 15% withholding tax (KES 9,815 before), about KES 695 a month.
That is KES 22 more than the same money would have earned at the previous auction.
For shorter money: KES 3,464 on the 182-day bill (6 months), KES 1,530 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 108,343 baada ya miezi 12: riba ya KES 8,343 baada ya kodi ya zuio ya 15% (KES 9,815 kabla ya kodi), yaani takriban KES 695 kwa mwezi.
Hiyo ni KES 22 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 | 7.200% | 7.177% | KES 4.00bn | KES 0.35bn | 9% | KES 0.35bn | 98.237 |
| 182-day | 8.150% | 8.125% | KES 10.00bn | KES 0.28bn | 3% | KES 0.28bn | 96.095 |
| 364-day | 9.815% | 9.789% | KES 10.00bn | KES 3.45bn | 35% | KES 3.45bn | 91.085 |
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.