Kenya Treasury bills · auction of 22 August 2022
Kenya T-bill auction, 22 August 2022: 91-day at 8.669%, up 10 bps
At the Treasury bill auction dated 22 August 2022, the Central Bank of Kenya cleared the 91-day bill at 8.669% (up 10 basis points), the 182-day bill at 9.492% (up 6 basis points) and the 364-day bill at 9.909% (down 1 basis point).
The auction was undersubscribed: bids totalled KES 19.7bn against KES 24.0bn on offer, a subscription rate of 82%. The government accepted KES 19.7bn, or 100% of what was bid.
The 91-day paper drew the most interest relative to its size, at 294% subscribed.
At 8.669%, the 91-day rate is the highest in the 52 auctions of the past year.
What this means for KES 100,000
Worked from the published rate · information, not advice
KES 8,423 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 108,423 after 12 months: KES 8,423 in interest after 15% withholding tax (KES 9,909 before), about KES 702 a month.
That is KES 11 less than the same money would have earned at the previous auction.
For shorter money: KES 4,034 on the 182-day bill (6 months), KES 1,842 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 108,423 baada ya miezi 12: riba ya KES 8,423 baada ya kodi ya zuio ya 15% (KES 9,909 kabla ya kodi), yaani takriban KES 702 kwa mwezi.
Hiyo ni KES 11 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 | 8.669% | 8.565% | KES 4.00bn | KES 11.77bn | 294% | KES 11.77bn | 97.884 |
| 182-day | 9.492% | 9.433% | KES 10.00bn | KES 6.80bn | 68% | KES 6.80bn | 95.481 |
| 364-day | 9.909% | 9.922% | KES 10.00bn | KES 1.14bn | 11% | KES 1.13bn | 91.007 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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