Kenya Treasury bills · auction of 18 December 2023
Kenya T-bill auction, 18 December 2023: 91-day at 15.771%, up 14 bps
At the Treasury bill auction dated 18 December 2023, the Central Bank of Kenya cleared the 91-day bill at 15.771% (up 14 basis points), the 182-day bill at 15.922% (up 17 basis points) and the 364-day bill at 15.834% (up 4 basis points).
The auction was undersubscribed: bids totalled KES 17.3bn against KES 24.0bn on offer, a subscription rate of 72%. The government accepted KES 17.1bn, or 99% of what was bid.
The 91-day paper drew the most interest relative to its size, at 345% subscribed.
At 15.771%, 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 13,459 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 113,459 after 12 months: KES 13,459 in interest after 15% withholding tax (KES 15,834 before), about KES 1,122 a month.
That is KES 33 more than the same money would have earned at the previous auction.
For shorter money: KES 6,767 on the 182-day bill (6 months), KES 3,351 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 113,459 baada ya miezi 12: riba ya KES 13,459 baada ya kodi ya zuio ya 15% (KES 15,834 kabla ya kodi), yaani takriban KES 1,122 kwa mwezi.
Hiyo ni KES 33 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 | 15.771% | 15.635% | KES 4.00bn | KES 13.79bn | 345% | KES 13.54bn | 96.217 |
| 182-day | 15.922% | 15.749% | KES 10.00bn | KES 2.92bn | 29% | KES 2.92bn | 92.645 |
| 364-day | 15.834% | 15.795% | KES 10.00bn | KES 0.63bn | 6% | KES 0.63bn | 86.363 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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