Kenya Treasury bills · auction of 20 July 2020
Kenya T-bill auction, 20 July 2020: 91-day at 6.011%, down 26 bps
At the Treasury bill auction dated 20 July 2020, the Central Bank of Kenya cleared the 91-day bill at 6.011% (down 26 basis points), the 182-day bill at 6.524% (down 24 basis points) and the 364-day bill at 7.464% (down 24 basis points).
Demand was strong: bids totalled KES 65.2bn against KES 24.0bn on offer, a subscription rate of 272%. The government accepted KES 45.5bn, or 70% of what was bid.
The 91-day paper drew the most interest relative to its size, at 747% subscribed.
At 6.011%, the 91-day rate is the lowest in the 52 auctions of the past year.
What this means for KES 100,000
Worked from the published rate · information, not advice
KES 6,344 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 106,344 after 12 months: KES 6,344 in interest after 15% withholding tax (KES 7,464 before), about KES 529 a month.
That is KES 201 less than the same money would have earned at the previous auction.
For shorter money: KES 2,773 on the 182-day bill (6 months), KES 1,277 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 106,344 baada ya miezi 12: riba ya KES 6,344 baada ya kodi ya zuio ya 15% (KES 7,464 kabla ya kodi), yaani takriban KES 529 kwa mwezi.
Hiyo ni KES 201 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 | 6.011% | 6.274% | KES 4.00bn | KES 29.88bn | 747% | KES 29.88bn | 98.523 |
| 182-day | 6.524% | 6.759% | KES 10.00bn | KES 10.78bn | 108% | KES 9.78bn | 96.849 |
| 364-day | 7.464% | 7.700% | KES 10.00bn | KES 24.51bn | 245% | KES 5.86bn | 93.072 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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