Kenya Treasury bills · auction of 26 September 2011
Kenya T-bill auction, 26 September 2011: 91-day at 13.193%, up 126 bps
At the Treasury bill auction dated 26 September 2011, the Central Bank of Kenya cleared the 91-day bill at 13.193% (up 126 basis points) and the 182-day bill at 12.622% (up 334 basis points).
The auction was fully subscribed: bids totalled KES 9.3bn against KES 9.0bn on offer, a subscription rate of 104%. The government accepted KES 6.4bn, or 69% of what was bid.
The 91-day paper drew the most interest relative to its size, at 158% subscribed.
At 13.193%, the 91-day rate is the highest in the 15 auctions of the past year.
What this means for KES 100,000
Worked from the published rate · information, not advice
KES 5,364 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 105,364 after 6 months: KES 5,364 in interest after 15% withholding tax (KES 6,311 before), about KES 894 a month.
That is KES 1,418 more than the same money would have earned at the previous auction.
For shorter money: KES 2,804 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 182 kwa riba ya mnada huu, utarudishiwa KES 105,364 baada ya miezi 6: riba ya KES 5,364 baada ya kodi ya zuio ya 15% (KES 6,311 kabla ya kodi), yaani takriban KES 894 kwa mwezi.
Hiyo ni KES 1,418 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 | 13.193% | 11.935% | KES 5.00bn | KES 7.90bn | 158% | KES 5.86bn | 96.816 |
| 182-day | 12.622% | 9.285% | KES 4.00bn | KES 1.43bn | 36% | KES 0.54bn | 94.079 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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