Kenya Treasury bills · auction of 9 January 2012
Kenya T-bill auction, 9 January 2012: 91-day at 20.696%, up 212 bps
At the Treasury bill auction dated 9 January 2012, the Central Bank of Kenya cleared the 91-day bill at 20.696% (up 212 basis points), the 182-day bill at 20.714% (up 47 basis points) and the 364-day bill at 21.961%.
The auction was fully subscribed: bids totalled KES 12.1bn against KES 10.0bn on offer, a subscription rate of 121%. The government accepted KES 7.4bn, or 61% of what was bid.
The 364-day paper drew the most interest relative to its size, at 202% subscribed.
At 20.696%, the 91-day rate is the highest in the 30 auctions of the past year.
What this means for KES 100,000
Worked from the published rate · information, not advice
KES 18,667 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 118,667 after 12 months: KES 18,667 in interest after 15% withholding tax (KES 21,961 before), about KES 1,556 a month.
For shorter money: KES 8,803 on the 182-day bill (6 months), KES 4,398 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 118,667 baada ya miezi 12: riba ya KES 18,667 baada ya kodi ya zuio ya 15% (KES 21,961 kabla ya kodi), yaani takriban KES 1,556 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 | 20.696% | 18.576% | KES 4.00bn | KES 4.95bn | 124% | KES 3.89bn | 95.093 |
| 182-day | 20.714% | 20.244% | KES 3.00bn | KES 1.13bn | 38% | KES 1.12bn | 90.638 |
| 364-day | 21.961% | — | KES 3.00bn | KES 6.06bn | 202% | KES 2.39bn | 82.034 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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