Kenya Treasury bills · auction of 15 August 2011
Kenya T-bill auction, 15 August 2011: 91-day at 9.145%, up 13 bps
At the Treasury bill auction dated 15 August 2011, the Central Bank of Kenya cleared the 91-day bill at 9.145% (up 13 basis points), the 182-day bill at 10.308% and the 364-day bill at 11.066%.
The auction was undersubscribed: bids totalled KES 4.1bn against KES 10.0bn on offer, a subscription rate of 41%. The government accepted KES 3.7bn, or 90% of what was bid.
The 91-day paper drew the most interest relative to its size, at 81% subscribed.
At 9.145%, the 91-day rate is the highest in the 9 auctions of the past year.
What this means for KES 100,000
Worked from the published rate · information, not advice
KES 9,406 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 109,406 after 12 months: KES 9,406 in interest after 15% withholding tax (KES 11,066 before), about KES 784 a month.
For shorter money: KES 4,381 on the 182-day bill (6 months), KES 1,943 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 109,406 baada ya miezi 12: riba ya KES 9,406 baada ya kodi ya zuio ya 15% (KES 11,066 kabla ya kodi), yaani takriban KES 784 kwa mwezi.
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 | 9.145% | 9.015% | KES 2.00bn | KES 1.62bn | 81% | KES 1.62bn | 97.771 |
| 182-day | 10.308% | — | KES 3.00bn | KES 1.73bn | 58% | KES 1.73bn | 95.111 |
| 364-day | 11.066% | — | KES 5.00bn | KES 0.77bn | 15% | KES 0.35bn | 90.061 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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