Kenya Treasury bills · auction of 13 May 2024
Kenya T-bill auction, 13 May 2024: 91-day at 15.904%, up 4 bps
At the Treasury bill auction dated 13 May 2024, the Central Bank of Kenya cleared the 91-day bill at 15.904% (up 4 basis points), the 182-day bill at 16.501% (up 1 basis point) and the 364-day bill at 16.507% (up 1 basis point).
Demand was strong: bids totalled KES 53.7bn against KES 24.0bn on offer, a subscription rate of 224%. The government accepted KES 49.5bn, or 92% of what was bid.
The 91-day paper drew the most interest relative to its size, at 431% subscribed.
Over the past year the 91-day rate has ranged from 10.518% to 16.731%.
What this means for KES 100,000
Worked from the published rate · information, not advice
KES 14,031 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 114,031 after 12 months: KES 14,031 in interest after 15% withholding tax (KES 16,507 before), about KES 1,169 a month.
That is KES 10 more than the same money would have earned at the previous auction.
For shorter money: KES 7,013 on the 182-day bill (6 months), KES 3,380 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 114,031 baada ya miezi 12: riba ya KES 14,031 baada ya kodi ya zuio ya 15% (KES 16,507 kabla ya kodi), yaani takriban KES 1,169 kwa mwezi.
Hiyo ni KES 10 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 | 15.904% | 15.865% | KES 4.00bn | KES 17.25bn | 431% | KES 17.04bn | 96.186 |
| 182-day | 16.501% | 16.488% | KES 10.00bn | KES 22.96bn | 230% | KES 19.41bn | 92.397 |
| 364-day | 16.507% | 16.495% | KES 10.00bn | KES 13.44bn | 134% | KES 13.09bn | 85.865 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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