Kenya Treasury bills · auction of 12 December 2011
Kenya T-bill auction, 12 December 2011: 91-day at 17.126%, up 58 bps
At the Treasury bill auction dated 12 December 2011, the Central Bank of Kenya cleared the 91-day bill at 17.126% (up 58 basis points), the 182-day bill at 17.679% (up 121 basis points) and the 364-day bill at 20.955%.
The auction was fully subscribed: bids totalled KES 13.4bn against KES 10.0bn on offer, a subscription rate of 134%. The government accepted KES 2.4bn, or 18% of what was bid.
The 91-day paper drew the most interest relative to its size, at 236% subscribed.
At 17.126%, the 91-day rate is the highest in the 26 auctions of the past year.
What this means for KES 100,000
Worked from the published rate · information, not advice
KES 17,812 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 117,812 after 12 months: KES 17,812 in interest after 15% withholding tax (KES 20,955 before), about KES 1,484 a month.
For shorter money: KES 7,514 on the 182-day bill (6 months), KES 3,639 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 117,812 baada ya miezi 12: riba ya KES 17,812 baada ya kodi ya zuio ya 15% (KES 20,955 kabla ya kodi), yaani takriban KES 1,484 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 | 17.126% | 16.543% | KES 4.00bn | KES 9.44bn | 236% | KES 1.63bn | 95.905 |
| 182-day | 17.679% | 16.471% | KES 3.00bn | KES 0.12bn | 4% | KES 0.08bn | 91.899 |
| 364-day | 20.955% | — | KES 3.00bn | KES 3.87bn | 129% | KES 0.71bn | 82.715 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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