Kenya Treasury bills · auction of 2 January 2012
Kenya T-bill auction, 2 January 2012: 91-day at 18.576%, unchanged
At the Treasury bill auction dated 2 January 2012, the Central Bank of Kenya cleared the 91-day bill at 18.576% (unchanged) and the 182-day bill at 20.244% (up 180 basis points).
The auction was undersubscribed: bids totalled KES 0.4bn against KES 3.4bn on offer, a subscription rate of 11%. The government accepted KES 0.6bn, or 162% of what was bid.
The 91-day paper drew the most interest relative to its size, at 12% subscribed.
At 18.576%, the 91-day rate is the highest in the 29 auctions of the past year.
What this means for KES 100,000
Worked from the published rate · information, not advice
KES 8,604 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 108,604 after 6 months: KES 8,604 in interest after 15% withholding tax (KES 10,122 before), about KES 1,434 a month.
That is KES 765 more than the same money would have earned at the previous auction.
For shorter money: KES 3,947 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 108,604 baada ya miezi 6: riba ya KES 8,604 baada ya kodi ya zuio ya 15% (KES 10,122 kabla ya kodi), yaani takriban KES 1,434 kwa mwezi.
Hiyo ni KES 765 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 | 18.576% | 18.576% | KES 3.00bn | KES 0.37bn | 12% | KES 0.37bn | — |
| 182-day | 20.244% | 18.445% | KES 0.37bn | — | — | KES 0.23bn | — |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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