Kenya Treasury bills · auction of 17 September 2012
Kenya T-bill auction, 17 September 2012: 91-day at 7.515%, down 29 bps
At the Treasury bill auction dated 17 September 2012, the Central Bank of Kenya cleared the 91-day bill at 7.515% (down 29 basis points).
The auction was undersubscribed: bids totalled KES 1.1bn against KES 4.0bn on offer, a subscription rate of 27%. The government accepted KES 1.1bn, or 100% of what was bid.
At 7.515%, 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 1,597 in 3 months on the 91-day bill, after tax
Put KES 100,000 into the 91-day bill at this auction and you get back KES 101,597 after 3 months: KES 1,597 in interest after 15% withholding tax (KES 1,879 before), about KES 532 a month.
That is KES 62 less than the same money would have earned at the previous auction.
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 91 kwa riba ya mnada huu, utarudishiwa KES 101,597 baada ya miezi 3: riba ya KES 1,597 baada ya kodi ya zuio ya 15% (KES 1,879 kabla ya kodi), yaani takriban KES 532 kwa mwezi.
Hiyo ni KES 62 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 | 7.515% | 7.808% | KES 4.00bn | KES 1.07bn | 27% | KES 1.07bn | 98.161 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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