Kenya Treasury bills · auction of 6 February 2012
Kenya T-bill auction, 6 February 2012: 91-day at 20.503%, down 11 bps
At the Treasury bill auction dated 6 February 2012, the Central Bank of Kenya cleared the 91-day bill at 20.503% (down 11 basis points), the 182-day bill at 20.723% and the 364-day bill at 20.956%.
Demand was strong: bids totalled KES 20.6bn against KES 10.0bn on offer, a subscription rate of 206%. The government accepted KES 16.1bn, or 78% of what was bid.
The 364-day paper drew the most interest relative to its size, at 392% subscribed.
Over the past year the 91-day rate has ranged from 8.798% to 20.799%.
What this means for KES 100,000
Worked from the published rate · information, not advice
KES 17,813 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 117,813 after 12 months: KES 17,813 in interest after 15% withholding tax (KES 20,956 before), about KES 1,484 a month.
For shorter money: KES 8,807 on the 182-day bill (6 months), KES 4,357 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 117,813 baada ya miezi 12: riba ya KES 17,813 baada ya kodi ya zuio ya 15% (KES 20,956 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 | 20.503% | 20.614% | KES 4.00bn | KES 6.71bn | 168% | KES 4.75bn | 95.137 |
| 182-day | 20.723% | — | KES 3.00bn | KES 2.09bn | 70% | KES 2.01bn | 90.635 |
| 364-day | 20.956% | — | KES 3.00bn | KES 11.76bn | 392% | KES 9.29bn | 82.714 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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