Kenya Treasury bills · auction of 20 February 2012
Kenya T-bill auction, 20 February 2012: 91-day at 19.332%, down 47 bps
At the Treasury bill auction dated 20 February 2012, the Central Bank of Kenya cleared the 91-day bill at 19.332% (down 47 basis points) and the 182-day bill at 19.539% (down 48 basis points).
The auction was fully subscribed: bids totalled KES 9.5bn against KES 7.0bn on offer, a subscription rate of 136%. The government accepted KES 9.3bn, or 97% of what was bid.
The 182-day paper drew the most interest relative to its size, at 227% 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 8,304 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 108,304 after 6 months: KES 8,304 in interest after 15% withholding tax (KES 9,770 before), about KES 1,384 a month.
That is KES 206 less than the same money would have earned at the previous auction.
For shorter money: KES 4,108 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 108,304 baada ya miezi 6: riba ya KES 8,304 baada ya kodi ya zuio ya 15% (KES 9,770 kabla ya kodi), yaani takriban KES 1,384 kwa mwezi.
Hiyo ni KES 206 pungufu 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 | 19.332% | 19.807% | KES 4.00bn | KES 2.72bn | 68% | KES 2.72bn | 95.402 |
| 182-day | 19.539% | 20.024% | KES 3.00bn | KES 6.82bn | 227% | KES 6.58bn | 91.122 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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