Kenya Treasury bills · auction of 2 November 2020
Kenya T-bill auction, 2 November 2020: 91-day at 6.653%, up 6 bps
At the Treasury bill auction dated 2 November 2020, the Central Bank of Kenya cleared the 91-day bill at 6.653% (up 6 basis points), the 182-day bill at 7.038% (up 7 basis points) and the 364-day bill at 7.933% (up 9 basis points).
The auction was undersubscribed: bids totalled KES 17.3bn against KES 24.0bn on offer, a subscription rate of 72%. The government accepted KES 16.5bn, or 95% of what was bid.
The 364-day paper drew the most interest relative to its size, at 110% subscribed.
Over the past year the 91-day rate has ranged from 6.011% to 7.333%.
What this means for KES 100,000
Worked from the published rate · information, not advice
KES 6,743 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 106,743 after 12 months: KES 6,743 in interest after 15% withholding tax (KES 7,933 before), about KES 562 a month.
That is KES 79 more than the same money would have earned at the previous auction.
For shorter money: KES 2,991 on the 182-day bill (6 months), KES 1,414 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 106,743 baada ya miezi 12: riba ya KES 6,743 baada ya kodi ya zuio ya 15% (KES 7,933 kabla ya kodi), yaani takriban KES 562 kwa mwezi.
Hiyo ni KES 79 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 | 6.653% | 6.589% | KES 4.00bn | KES 3.00bn | 75% | KES 2.51bn | 98.368 |
| 182-day | 7.038% | 6.967% | KES 10.00bn | KES 3.31bn | 33% | KES 3.31bn | 96.610 |
| 364-day | 7.933% | 7.840% | KES 10.00bn | KES 11.01bn | 110% | KES 10.72bn | 92.669 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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