Kenya Treasury bills · auction of 12 March 2012
Kenya T-bill auction, 12 March 2012: 91-day at 17.983%, down 76 bps
At the Treasury bill auction dated 12 March 2012, the Central Bank of Kenya cleared the 91-day bill at 17.983% (down 76 basis points), the 182-day bill at 18.377% (down 38 basis points) and the 364-day bill at 17.035%.
Demand was strong: bids totalled KES 18.3bn against KES 10.0bn on offer, a subscription rate of 183%. The government accepted KES 10.4bn, or 57% of what was bid.
The 364-day paper drew the most interest relative to its size, at 475% 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 14,480 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 114,480 after 12 months: KES 14,480 in interest after 15% withholding tax (KES 17,035 before), about KES 1,207 a month.
For shorter money: KES 7,810 on the 182-day bill (6 months), KES 3,821 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 114,480 baada ya miezi 12: riba ya KES 14,480 baada ya kodi ya zuio ya 15% (KES 17,035 kabla ya kodi), yaani takriban KES 1,207 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 | 17.983% | 18.745% | KES 4.00bn | KES 3.19bn | 80% | KES 3.19bn | 95.709 |
| 182-day | 18.377% | 18.757% | KES 3.00bn | KES 0.82bn | 27% | KES 0.82bn | 91.606 |
| 364-day | 17.035% | — | KES 3.00bn | KES 14.24bn | 475% | KES 6.41bn | 85.479 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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