Kenya Treasury bills · auction of 5 September 2011
Kenya T-bill auction, 5 September 2011: 91-day at 10.281%, up 57 bps
At the Treasury bill auction dated 5 September 2011, the Central Bank of Kenya cleared the 91-day bill at 10.281% (up 57 basis points).
Demand was strong: bids totalled KES 3.5bn against KES 2.0bn on offer, a subscription rate of 176%. The government accepted KES 3.5bn, or 100% of what was bid.
At 10.281%, the 91-day rate is the highest in the 12 auctions of the past year.
What this means for KES 100,000
Worked from the published rate · information, not advice
KES 2,185 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 102,185 after 3 months: KES 2,185 in interest after 15% withholding tax (KES 2,570 before), about KES 728 a month.
That is KES 122 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 102,185 baada ya miezi 3: riba ya KES 2,185 baada ya kodi ya zuio ya 15% (KES 2,570 kabla ya kodi), yaani takriban KES 728 kwa mwezi.
Hiyo ni KES 122 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 | 10.281% | 9.708% | KES 2.00bn | KES 3.53bn | 176% | KES 3.52bn | 97.501 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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