Kenya Treasury bills · auction of 1 October 2012
Kenya T-bill auction, 1 October 2012: 91-day at 8.093%, up 45 bps
At the Treasury bill auction dated 1 October 2012, the Central Bank of Kenya cleared the 91-day bill at 8.093% (up 45 basis points) and the 182-day bill at 9.888% (up 62 basis points).
The auction was undersubscribed: bids totalled KES 4.9bn against KES 8.0bn on offer, a subscription rate of 61%. The government accepted KES 3.4bn, or 70% of what was bid.
The 182-day paper drew the most interest relative to its size, at 92% subscribed.
Over the past year the 91-day rate has ranged from 7.515% to 20.799%.
What this means for KES 100,000
Worked from the published rate · information, not advice
KES 4,202 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 104,202 after 6 months: KES 4,202 in interest after 15% withholding tax (KES 4,944 before), about KES 700 a month.
That is KES 265 more than the same money would have earned at the previous auction.
For shorter money: KES 1,720 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 104,202 baada ya miezi 6: riba ya KES 4,202 baada ya kodi ya zuio ya 15% (KES 4,944 kabla ya kodi), yaani takriban KES 700 kwa mwezi.
Hiyo ni KES 265 zaidi 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 | 8.093% | 7.647% | KES 4.00bn | KES 1.24bn | 31% | KES 1.24bn | 98.022 |
| 182-day | 9.888% | 9.265% | KES 4.00bn | KES 3.67bn | 92% | KES 2.20bn | 95.301 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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