Kenya Treasury bills · auction of 4 June 2012
Kenya T-bill auction, 4 June 2012: 91-day at 9.336%, down 53 bps
At the Treasury bill auction dated 4 June 2012, the Central Bank of Kenya cleared the 91-day bill at 9.336% (down 53 basis points) and the 182-day bill at 10.327% (down 59 basis points).
The auction was undersubscribed: bids totalled KES 2.3bn against KES 4.0bn on offer, a subscription rate of 58%. The government accepted KES 2.3bn, or 100% of what was bid.
The 182-day paper drew the most interest relative to its size, at 59% 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 4,389 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 104,389 after 6 months: KES 4,389 in interest after 15% withholding tax (KES 5,164 before), about KES 731 a month.
That is KES 250 less than the same money would have earned at the previous auction.
For shorter money: KES 1,984 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 104,389 baada ya miezi 6: riba ya KES 4,389 baada ya kodi ya zuio ya 15% (KES 5,164 kabla ya kodi), yaani takriban KES 731 kwa mwezi.
Hiyo ni KES 250 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 | 9.336% | 9.865% | KES 2.00bn | KES 1.13bn | 57% | KES 1.13bn | 97.725 |
| 182-day | 10.327% | 10.915% | KES 2.00bn | KES 1.17bn | 59% | KES 1.17bn | 95.103 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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