Kenya Treasury bills · auction of 20 February 2023
Kenya T-bill auction, 20 February 2023: 91-day at 9.623%, up 2 bps
At the Treasury bill auction dated 20 February 2023, the Central Bank of Kenya cleared the 91-day bill at 9.623% (up 2 basis points), the 182-day bill at 10.079% (up 4 basis points) and the 364-day bill at 10.638% (up 4 basis points).
Demand was strong: bids totalled KES 45.9bn against KES 24.0bn on offer, a subscription rate of 191%. The government accepted KES 44.7bn, or 97% of what was bid.
The 91-day paper drew the most interest relative to its size, at 552% subscribed.
At 9.623%, 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 9,042 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 109,042 after 12 months: KES 9,042 in interest after 15% withholding tax (KES 10,638 before), about KES 754 a month.
That is KES 30 more than the same money would have earned at the previous auction.
For shorter money: KES 4,284 on the 182-day bill (6 months), KES 2,045 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 109,042 baada ya miezi 12: riba ya KES 9,042 baada ya kodi ya zuio ya 15% (KES 10,638 kabla ya kodi), yaani takriban KES 754 kwa mwezi.
Hiyo ni KES 30 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 | 9.623% | 9.601% | KES 4.00bn | KES 22.09bn | 552% | KES 20.90bn | 97.657 |
| 182-day | 10.079% | 10.042% | KES 10.00bn | KES 17.53bn | 175% | KES 17.52bn | 95.215 |
| 364-day | 10.638% | 10.603% | KES 10.00bn | KES 6.30bn | 63% | KES 6.30bn | 90.409 |
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.