Kenya Treasury bills · auction of 22 June 2020
Kenya T-bill auction, 22 June 2020: 91-day at 7.089%, down 17 bps
At the Treasury bill auction dated 22 June 2020, the Central Bank of Kenya cleared the 91-day bill at 7.089% (down 17 basis points), the 182-day bill at 7.739% (down 32 basis points) and the 364-day bill at 8.667% (down 36 basis points).
Demand was strong: bids totalled KES 45.2bn against KES 24.0bn on offer, a subscription rate of 188%. The government accepted KES 14.7bn, or 33% of what was bid.
The 91-day paper drew the most interest relative to its size, at 334% subscribed.
Over the past year the 91-day rate has ranged from 6.307% to 7.333%.
What this means for KES 100,000
Worked from the published rate · information, not advice
KES 7,367 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 107,367 after 12 months: KES 7,367 in interest after 15% withholding tax (KES 8,667 before), about KES 614 a month.
That is KES 309 less than the same money would have earned at the previous auction.
For shorter money: KES 3,289 on the 182-day bill (6 months), KES 1,506 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 107,367 baada ya miezi 12: riba ya KES 7,367 baada ya kodi ya zuio ya 15% (KES 8,667 kabla ya kodi), yaani takriban KES 614 kwa mwezi.
Hiyo ni KES 309 pungufu 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 | 7.089% | 7.259% | KES 4.00bn | KES 13.37bn | 334% | KES 6.36bn | 98.263 |
| 182-day | 7.739% | 8.058% | KES 10.00bn | KES 13.06bn | 131% | KES 4.24bn | 96.284 |
| 364-day | 8.667% | 9.030% | KES 10.00bn | KES 18.77bn | 188% | KES 4.12bn | 92.044 |
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.