Kenya Treasury bills · auction of 3 February 2020
Kenya T-bill auction, 3 February 2020: 91-day at 7.296%, up 2 bps
At the Treasury bill auction dated 3 February 2020, the Central Bank of Kenya cleared the 91-day bill at 7.296% (up 2 basis points), the 182-day bill at 8.229% (up 2 basis points) and the 364-day bill at 9.879% (up 2 basis points).
The auction was fully subscribed: bids totalled KES 32.6bn against KES 24.0bn on offer, a subscription rate of 136%. The government accepted KES 31.0bn, or 95% of what was bid.
The 364-day paper drew the most interest relative to its size, at 218% 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 8,397 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 108,397 after 12 months: KES 8,397 in interest after 15% withholding tax (KES 9,879 before), about KES 700 a month.
That is KES 17 more than the same money would have earned at the previous auction.
For shorter money: KES 3,497 on the 182-day bill (6 months), KES 1,550 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 108,397 baada ya miezi 12: riba ya KES 8,397 baada ya kodi ya zuio ya 15% (KES 9,879 kabla ya kodi), yaani takriban KES 700 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 | 7.296% | 7.279% | KES 4.00bn | KES 4.58bn | 114% | KES 4.56bn | 98.213 |
| 182-day | 8.229% | 8.212% | KES 10.00bn | KES 6.22bn | 62% | KES 6.05bn | 96.059 |
| 364-day | 9.879% | 9.859% | KES 10.00bn | KES 21.82bn | 218% | KES 20.39bn | 91.032 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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