Kenya Treasury bills · auction of 2 July 2012
Kenya T-bill auction, 2 July 2012: 91-day at 10.780%, up 10 bps
At the Treasury bill auction dated 2 July 2012, the Central Bank of Kenya cleared the 91-day bill at 10.780% (up 10 basis points) and the 182-day bill at 11.091%.
The auction was undersubscribed: bids totalled KES 0.9bn against KES 4.0bn on offer, a subscription rate of 23%. The government accepted KES 0.9bn, or 100% of what was bid.
The 91-day paper drew the most interest relative to its size, at 39% 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 4,714 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 104,714 after 6 months: KES 4,714 in interest after 15% withholding tax (KES 5,546 before), about KES 786 a month.
For shorter money: KES 2,291 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 104,714 baada ya miezi 6: riba ya KES 4,714 baada ya kodi ya zuio ya 15% (KES 5,546 kabla ya kodi), yaani takriban KES 786 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 | 10.780% | 10.675% | KES 2.00bn | KES 0.79bn | 39% | KES 0.79bn | 97.383 |
| 182-day | 11.091% | — | KES 2.00bn | KES 0.12bn | 6% | KES 0.12bn | 94.760 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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