Kenya Treasury bills · auction of 4 July 2011
Kenya T-bill auction, 4 July 2011: 91-day at 8.988%, down 2 bps
At the Treasury bill auction dated 4 July 2011, the Central Bank of Kenya cleared the 91-day bill at 8.988% (down 2 basis points).
The auction was undersubscribed: bids totalled KES 1.5bn against KES 2.0bn on offer, a subscription rate of 74%. The government accepted KES 1.4bn, or 97% of what was bid.
What this means for KES 100,000
Worked from the published rate · information, not advice
KES 1,910 in 3 months on the 91-day bill, after tax
Put KES 100,000 into the 91-day bill at this auction and you get back KES 101,910 after 3 months: KES 1,910 in interest after 15% withholding tax (KES 2,247 before), about KES 637 a month.
That is KES 4 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 91 kwa riba ya mnada huu, utarudishiwa KES 101,910 baada ya miezi 3: riba ya KES 1,910 baada ya kodi ya zuio ya 15% (KES 2,247 kabla ya kodi), yaani takriban KES 637 kwa mwezi.
Hiyo ni KES 4 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 | 8.988% | 9.006% | KES 2.00bn | KES 1.49bn | 74% | KES 1.44bn | 97.808 |
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.