Kenya Treasury bills · auction of 9 October 2023
Kenya T-bill auction, 9 October 2023: 91-day at 14.873%, up 5 bps
At the Treasury bill auction dated 9 October 2023, the Central Bank of Kenya cleared the 91-day bill at 14.873% (up 5 basis points), the 182-day bill at 14.978% (up 3 basis points) and the 364-day bill at 15.187% (up 13 basis points).
The auction was fully subscribed: bids totalled KES 33.1bn against KES 24.0bn on offer, a subscription rate of 138%. The government accepted KES 27.2bn, or 82% of what was bid.
The 91-day paper drew the most interest relative to its size, at 715% subscribed.
At 14.873%, 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 12,909 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 112,909 after 12 months: KES 12,909 in interest after 15% withholding tax (KES 15,187 before), about KES 1,076 a month.
That is KES 112 more than the same money would have earned at the previous auction.
For shorter money: KES 6,366 on the 182-day bill (6 months), KES 3,161 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 112,909 baada ya miezi 12: riba ya KES 12,909 baada ya kodi ya zuio ya 15% (KES 15,187 kabla ya kodi), yaani takriban KES 1,076 kwa mwezi.
Hiyo ni KES 112 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 | 14.873% | 14.821% | KES 4.00bn | KES 28.58bn | 715% | KES 24.29bn | 96.424 |
| 182-day | 14.978% | 14.950% | KES 10.00bn | KES 1.41bn | 14% | KES 0.93bn | 93.051 |
| 364-day | 15.187% | 15.054% | KES 10.00bn | KES 3.16bn | 32% | KES 2.02bn | 86.847 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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