Kenya Treasury bills · auction of 3 September 2012
Kenya T-bill auction, 3 September 2012: 91-day at 8.119%, down 46 bps
At the Treasury bill auction dated 3 September 2012, the Central Bank of Kenya cleared the 91-day bill at 8.119% (down 46 basis points), the 182-day bill at 9.848% (down 18 basis points) and the 364-day bill at 10.336%.
The auction was fully subscribed: bids totalled KES 19.0bn against KES 15.0bn on offer, a subscription rate of 127%. The government accepted KES 13.7bn, or 72% of what was bid.
The 91-day paper drew the most interest relative to its size, at 251% subscribed.
At 8.119%, the 91-day rate is the lowest in the 50 auctions of the past year.
What this means for KES 100,000
Worked from the published rate · information, not advice
KES 8,786 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 108,786 after 12 months: KES 8,786 in interest after 15% withholding tax (KES 10,336 before), about KES 732 a month.
For shorter money: KES 4,185 on the 182-day bill (6 months), KES 1,725 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 108,786 baada ya miezi 12: riba ya KES 8,786 baada ya kodi ya zuio ya 15% (KES 10,336 kabla ya kodi), yaani takriban KES 732 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 | 8.119% | 8.583% | KES 4.00bn | KES 10.06bn | 251% | KES 4.80bn | 98.016 |
| 182-day | 9.848% | 10.032% | KES 4.00bn | KES 4.42bn | 111% | KES 4.33bn | 95.319 |
| 364-day | 10.336% | — | KES 7.00bn | KES 4.54bn | 65% | KES 4.54bn | 90.656 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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