Kenya Treasury bills · auction of 3 July 2023
Kenya T-bill auction, 3 July 2023: 91-day at 11.904%, up 12 bps
At the Treasury bill auction dated 3 July 2023, the Central Bank of Kenya cleared the 91-day bill at 11.904% (up 12 basis points), the 182-day bill at 11.947% (up 8 basis points) and the 364-day bill at 12.157% (up 22 basis points).
The auction was undersubscribed: bids totalled KES 9.5bn against KES 24.0bn on offer, a subscription rate of 40%. The government accepted KES 5.5bn, or 58% of what was bid.
The 91-day paper drew the most interest relative to its size, at 145% subscribed.
At 11.904%, 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 10,333 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 110,333 after 12 months: KES 10,333 in interest after 15% withholding tax (KES 12,157 before), about KES 861 a month.
That is KES 190 more than the same money would have earned at the previous auction.
For shorter money: KES 5,077 on the 182-day bill (6 months), KES 2,530 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 110,333 baada ya miezi 12: riba ya KES 10,333 baada ya kodi ya zuio ya 15% (KES 12,157 kabla ya kodi), yaani takriban KES 861 kwa mwezi.
Hiyo ni KES 190 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 | 11.904% | 11.785% | KES 4.00bn | KES 5.78bn | 145% | KES 2.71bn | 97.118 |
| 182-day | 11.947% | 11.863% | KES 10.00bn | KES 2.20bn | 22% | KES 1.30bn | 94.378 |
| 364-day | 12.157% | 11.934% | KES 10.00bn | KES 1.51bn | 15% | KES 1.51bn | 89.187 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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