Kenya Treasury bills · auction of 18 September 2023
Kenya T-bill auction, 18 September 2023: 91-day at 14.515%, up 28 bps
At the Treasury bill auction dated 18 September 2023, the Central Bank of Kenya cleared the 91-day bill at 14.515% (up 28 basis points), the 182-day bill at 14.415% (up 5 basis points) and the 364-day bill at 14.728% (down 13 basis points).
The auction was undersubscribed: bids totalled KES 22.1bn against KES 24.0bn on offer, a subscription rate of 92%. The government accepted KES 19.5bn, or 88% of what was bid.
The 91-day paper drew the most interest relative to its size, at 450% subscribed.
At 14.515%, 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 12,519 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 112,519 after 12 months: KES 12,519 in interest after 15% withholding tax (KES 14,728 before), about KES 1,043 a month.
That is KES 112 less than the same money would have earned at the previous auction.
For shorter money: KES 6,126 on the 182-day bill (6 months), KES 3,084 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 112,519 baada ya miezi 12: riba ya KES 12,519 baada ya kodi ya zuio ya 15% (KES 14,728 kabla ya kodi), yaani takriban KES 1,043 kwa mwezi.
Hiyo ni KES 112 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 | 14.515% | 14.234% | KES 4.00bn | KES 18.00bn | 450% | KES 17.98bn | 96.508 |
| 182-day | 14.415% | 14.369% | KES 10.00bn | KES 0.70bn | 7% | KES 0.70bn | 93.294 |
| 364-day | 14.728% | 14.860% | KES 10.00bn | KES 3.41bn | 34% | KES 0.85bn | 87.193 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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