Kenya Treasury bills · auction of 16 April 2012
Kenya T-bill auction, 16 April 2012: 91-day at 16.078%, down 26 bps
At the Treasury bill auction dated 16 April 2012, the Central Bank of Kenya cleared the 91-day bill at 16.078% (down 26 basis points) and the 182-day bill at 16.737% (down 22 basis points).
The auction was fully subscribed: bids totalled KES 8.7bn against KES 7.0bn on offer, a subscription rate of 124%. The government accepted KES 7.2bn, or 83% of what was bid.
The 182-day paper drew the most interest relative to its size, at 235% 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 7,113 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 107,113 after 6 months: KES 7,113 in interest after 15% withholding tax (KES 8,369 before), about KES 1,186 a month.
That is KES 95 less than the same money would have earned at the previous auction.
For shorter money: KES 3,417 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 107,113 baada ya miezi 6: riba ya KES 7,113 baada ya kodi ya zuio ya 15% (KES 8,369 kabla ya kodi), yaani takriban KES 1,186 kwa mwezi.
Hiyo ni KES 95 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 | 16.078% | 16.340% | KES 4.00bn | KES 1.60bn | 40% | KES 1.60bn | 96.146 |
| 182-day | 16.737% | 16.960% | KES 3.00bn | KES 7.05bn | 235% | KES 5.58bn | 92.297 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
Free, every weekday at 7:00
The Afronomics Morning
Every Monday: the week's auctions, currencies and the stories that moved African markets. Free.