Kenya Treasury bills · auction of 27 November 2023
Kenya T-bill auction, 27 November 2023: 91-day at 15.443%, up 8 bps
At the Treasury bill auction dated 27 November 2023, the Central Bank of Kenya cleared the 91-day bill at 15.443% (up 8 basis points), the 182-day bill at 15.444% (up 2 basis points) and the 364-day bill at 15.583% (down 6 basis points).
The auction was fully subscribed: bids totalled KES 27.6bn against KES 24.0bn on offer, a subscription rate of 115%. The government accepted KES 26.6bn, or 96% of what was bid.
The 91-day paper drew the most interest relative to its size, at 585% subscribed.
At 15.443%, 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 13,245 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 113,245 after 12 months: KES 13,245 in interest after 15% withholding tax (KES 15,583 before), about KES 1,104 a month.
That is KES 47 less than the same money would have earned at the previous auction.
For shorter money: KES 6,564 on the 182-day bill (6 months), KES 3,282 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 113,245 baada ya miezi 12: riba ya KES 13,245 baada ya kodi ya zuio ya 15% (KES 15,583 kabla ya kodi), yaani takriban KES 1,104 kwa mwezi.
Hiyo ni KES 47 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 | 15.443% | 15.363% | KES 4.00bn | KES 23.40bn | 585% | KES 22.41bn | 96.293 |
| 182-day | 15.444% | 15.428% | KES 10.00bn | KES 2.38bn | 24% | KES 2.37bn | 92.850 |
| 364-day | 15.583% | 15.639% | KES 10.00bn | KES 1.85bn | 19% | KES 1.85bn | 86.550 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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