Kenya Treasury bills · auction of 7 May 2012
Kenya T-bill auction, 7 May 2012: 182-day at 14.775%, down 185 bps
At the Treasury bill auction dated 7 May 2012, the Central Bank of Kenya cleared the 182-day bill at 14.775% (down 185 basis points).
Demand was strong: bids totalled KES 7.7bn against KES 2.0bn on offer, a subscription rate of 383%. The government accepted KES 1.8bn, or 24% of what was bid.
Over the past year the 182-day rate has ranged from 9.285% to 20.914%.
What this means for KES 100,000
Worked from the published rate · information, not advice
KES 6,279 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 106,279 after 6 months: KES 6,279 in interest after 15% withholding tax (KES 7,388 before), about KES 1,047 a month.
That is KES 785 less than the same money would have earned at the previous auction.
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 106,279 baada ya miezi 6: riba ya KES 6,279 baada ya kodi ya zuio ya 15% (KES 7,388 kabla ya kodi), yaani takriban KES 1,047 kwa mwezi.
Hiyo ni KES 785 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 |
|---|---|---|---|---|---|---|---|
| 182-day | 14.775% | 16.623% | KES 2.00bn | KES 7.67bn | 383% | KES 1.81bn | 93.138 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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