Kenya Treasury bills · auction of 6 August 2012
Kenya T-bill auction, 6 August 2012: 91-day at 12.864%, down 36 bps
At the Treasury bill auction dated 6 August 2012, the Central Bank of Kenya cleared the 91-day bill at 12.864% (down 36 basis points) and the 182-day bill at 13.038% (down 34 basis points).
Demand was strong: bids totalled KES 20.4bn against KES 8.0bn on offer, a subscription rate of 255%. The government accepted KES 10.5bn, or 51% of what was bid.
The 91-day paper drew the most interest relative to its size, at 322% subscribed.
Over the past year the 91-day rate has ranged from 9.145% to 20.799%.
What this means for KES 100,000
Worked from the published rate · information, not advice
KES 5,541 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 105,541 after 6 months: KES 5,541 in interest after 15% withholding tax (KES 6,519 before), about KES 924 a month.
That is KES 145 less than the same money would have earned at the previous auction.
For shorter money: KES 2,734 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 105,541 baada ya miezi 6: riba ya KES 5,541 baada ya kodi ya zuio ya 15% (KES 6,519 kabla ya kodi), yaani takriban KES 924 kwa mwezi.
Hiyo ni KES 145 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 | 12.864% | 13.226% | KES 4.00bn | KES 12.87bn | 322% | KES 5.44bn | 96.892 |
| 182-day | 13.038% | 13.379% | KES 4.00bn | KES 7.56bn | 189% | KES 5.06bn | 93.896 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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