Kenya Treasury bills · auction of 8 August 2011
Kenya T-bill auction, 8 August 2011: 91-day at 9.015%, up 1 bps
At the Treasury bill auction dated 8 August 2011, the Central Bank of Kenya cleared the 91-day bill at 9.015% (up 1 basis point).
Demand was strong: bids totalled KES 5.0bn against KES 2.0bn on offer, a subscription rate of 251%. The government accepted KES 4.0bn, or 81% of what was bid.
At 9.015%, the 91-day rate is the highest in the 8 auctions of the past year.
What this means for KES 100,000
Worked from the published rate · information, not advice
KES 1,916 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 101,916 after 3 months: KES 1,916 in interest after 15% withholding tax (KES 2,254 before), about KES 639 a month.
That is KES 1 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 91 kwa riba ya mnada huu, utarudishiwa KES 101,916 baada ya miezi 3: riba ya KES 1,916 baada ya kodi ya zuio ya 15% (KES 2,254 kabla ya kodi), yaani takriban KES 639 kwa mwezi.
Hiyo ni KES 1 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 | 9.015% | 9.010% | KES 2.00bn | KES 5.01bn | 251% | KES 4.04bn | 97.802 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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