Kenya Treasury bills · auction of 16 May 2011
Kenya T-bill auction, 16 May 2011: 364-day at 6.772%, up 177 bps
At the Treasury bill auction dated 16 May 2011, the Central Bank of Kenya cleared the 364-day bill at 6.772% (up 177 basis points).
The auction was undersubscribed: bids totalled KES 4.3bn against KES 5.0bn on offer, a subscription rate of 85%. The government accepted KES 3.4bn, or 79% of what was bid.
What this means for KES 100,000
Worked from the published rate · information, not advice
KES 5,756 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 105,756 after 12 months: KES 5,756 in interest after 15% withholding tax (KES 6,772 before), about KES 480 a month.
That is KES 1,508 more than the same money would have earned at the previous auction.
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 105,756 baada ya miezi 12: riba ya KES 5,756 baada ya kodi ya zuio ya 15% (KES 6,772 kabla ya kodi), yaani takriban KES 480 kwa mwezi.
Hiyo ni KES 1,508 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 |
|---|---|---|---|---|---|---|---|
| 364-day | 6.772% | 4.998% | KES 5.00bn | KES 4.27bn | 85% | KES 3.36bn | 93.674 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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