Kenya Treasury bills · auction of 2 December 2024
Kenya T-bill auction, 2 December 2024: 91-day at 11.250%, down 78 bps
At the Treasury bill auction dated 2 December 2024, the Central Bank of Kenya cleared the 91-day bill at 11.250% (down 78 basis points), the 182-day bill at 11.338% (down 87 basis points) and the 364-day bill at 12.490% (down 80 basis points).
Demand was strong: bids totalled KES 50.7bn against KES 24.0bn on offer, a subscription rate of 211%. The government accepted KES 34.7bn, or 68% of what was bid.
The 91-day paper drew the most interest relative to its size, at 470% subscribed.
At 11.250%, the 91-day rate is the lowest in the 52 auctions of the past year.
What this means for KES 100,000
Worked from the published rate · information, not advice
KES 10,617 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 110,617 after 12 months: KES 10,617 in interest after 15% withholding tax (KES 12,490 before), about KES 885 a month.
That is KES 684 less than the same money would have earned at the previous auction.
For shorter money: KES 4,819 on the 182-day bill (6 months), KES 2,391 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 110,617 baada ya miezi 12: riba ya KES 10,617 baada ya kodi ya zuio ya 15% (KES 12,490 kabla ya kodi), yaani takriban KES 885 kwa mwezi.
Hiyo ni KES 684 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 | 11.250% | 12.034% | KES 4.00bn | KES 18.82bn | 470% | KES 15.94bn | 97.272 |
| 182-day | 11.338% | 12.210% | KES 10.00bn | KES 10.42bn | 104% | KES 4.21bn | 94.649 |
| 364-day | 12.490% | 13.295% | KES 10.00bn | KES 21.42bn | 214% | KES 14.51bn | 88.924 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
Free, every weekday at 7:00
The Afronomics Morning
Every Monday: the week's auctions, currencies and the stories that moved African markets. Free.