Kenya Treasury bills · auction of 20 June 2011
Kenya T-bill auction, 20 June 2011: 182-day at 9.906%, down 4 bps
At the Treasury bill auction dated 20 June 2011, the Central Bank of Kenya cleared the 182-day bill at 9.906% (down 4 basis points).
Demand was strong: bids totalled KES 10.0bn against KES 2.5bn on offer, a subscription rate of 399%. The government accepted KES 2.2bn, or 22% of what was bid.
What this means for KES 100,000
Worked from the published rate · information, not advice
KES 4,210 in 6 months on the 182-day bill, after tax
Put KES 100,000 into the 182-day bill at this auction and you get back KES 104,210 after 6 months: KES 4,210 in interest after 15% withholding tax (KES 4,953 before), about KES 702 a month.
That is KES 18 less 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 182 kwa riba ya mnada huu, utarudishiwa KES 104,210 baada ya miezi 6: riba ya KES 4,210 baada ya kodi ya zuio ya 15% (KES 4,953 kabla ya kodi), yaani takriban KES 702 kwa mwezi.
Hiyo ni KES 18 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 |
|---|---|---|---|---|---|---|---|
| 182-day | 9.906% | 9.949% | KES 2.50bn | KES 9.97bn | 399% | KES 2.16bn | 95.293 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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