Kenya Treasury bills · auction of 13 August 2012
Kenya T-bill auction, 13 August 2012: 91-day at 12.000%, down 86 bps
At the Treasury bill auction dated 13 August 2012, the Central Bank of Kenya cleared the 91-day bill at 12.000% (down 86 basis points), the 182-day bill at 12.638% (down 40 basis points) and the 364-day bill at 12.853%.
Demand was strong: bids totalled KES 37.9bn against KES 15.0bn on offer, a subscription rate of 252%. The government accepted KES 17.6bn, or 46% of what was bid.
The 91-day paper drew the most interest relative to its size, at 432% subscribed.
Over the past year the 91-day rate has ranged from 9.258% to 20.799%.
What this means for KES 100,000
Worked from the published rate · information, not advice
KES 10,925 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 110,925 after 12 months: KES 10,925 in interest after 15% withholding tax (KES 12,853 before), about KES 910 a month.
For shorter money: KES 5,371 on the 182-day bill (6 months), KES 2,550 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 110,925 baada ya miezi 12: riba ya KES 10,925 baada ya kodi ya zuio ya 15% (KES 12,853 kabla ya kodi), yaani takriban KES 910 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 | 12.000% | 12.864% | KES 4.00bn | KES 17.27bn | 432% | KES 5.95bn | 97.095 |
| 182-day | 12.638% | 13.038% | KES 4.00bn | KES 10.67bn | 267% | KES 4.60bn | 94.072 |
| 364-day | 12.853% | — | KES 7.00bn | KES 9.92bn | 142% | KES 7.02bn | 88.639 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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