Kenya Treasury bills · auction of 11 June 2012
Kenya T-bill auction, 11 June 2012: 91-day at 9.801%, up 46 bps
At the Treasury bill auction dated 11 June 2012, the Central Bank of Kenya cleared the 91-day bill at 9.801% (up 46 basis points), the 182-day bill at 10.750% (up 42 basis points) and the 364-day bill at 12.431%.
The auction was undersubscribed: bids totalled KES 1.2bn against KES 6.0bn on offer, a subscription rate of 20%. The government accepted KES 1.2bn, or 96% of what was bid.
The 91-day paper drew the most interest relative to its size, at 45% subscribed.
Over the past year the 91-day rate has ranged from 8.954% to 20.799%.
What this means for KES 100,000
Worked from the published rate · information, not advice
KES 10,566 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 110,566 after 12 months: KES 10,566 in interest after 15% withholding tax (KES 12,431 before), about KES 881 a month.
For shorter money: KES 4,569 on the 182-day bill (6 months), KES 2,083 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 110,566 baada ya miezi 12: riba ya KES 10,566 baada ya kodi ya zuio ya 15% (KES 12,431 kabla ya kodi), yaani takriban KES 881 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 | 9.801% | 9.336% | KES 2.00bn | KES 0.90bn | 45% | KES 0.85bn | 97.615 |
| 182-day | 10.750% | 10.327% | KES 2.00bn | KES 0.28bn | 14% | KES 0.28bn | 94.912 |
| 364-day | 12.431% | — | KES 2.00bn | KES 0.04bn | 2% | KES 0.04bn | 88.970 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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