Kenya Treasury bills · auction of 30 April 2012
Kenya T-bill auction, 30 April 2012: 91-day at 14.992%, down 109 bps
At the Treasury bill auction dated 30 April 2012, the Central Bank of Kenya cleared the 91-day bill at 14.992% (down 109 basis points) and the 182-day bill at 16.623% (down 11 basis points).
Demand was strong: bids totalled KES 10.6bn against KES 4.0bn on offer, a subscription rate of 265%. The government accepted KES 6.2bn, or 58% of what was bid.
The 91-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 7,065 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 107,065 after 6 months: KES 7,065 in interest after 15% withholding tax (KES 8,312 before), about KES 1,177 a month.
That is KES 48 less than the same money would have earned at the previous auction.
For shorter money: KES 3,186 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 107,065 baada ya miezi 6: riba ya KES 7,065 baada ya kodi ya zuio ya 15% (KES 8,312 kabla ya kodi), yaani takriban KES 1,177 kwa mwezi.
Hiyo ni KES 48 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 | 14.992% | 16.078% | KES 2.00bn | KES 7.85bn | 392% | KES 3.45bn | 96.397 |
| 182-day | 16.623% | 16.737% | KES 2.00bn | KES 2.74bn | 137% | KES 2.73bn | 92.346 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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