Kenya Treasury bills · auction of 5 November 2012
Kenya T-bill auction, 5 November 2012: 91-day at 10.237%, up 29 bps
At the Treasury bill auction dated 5 November 2012, the Central Bank of Kenya cleared the 91-day bill at 10.237% (up 29 basis points) and the 182-day bill at 10.854%.
Demand was strong: bids totalled KES 14.4bn against KES 7.0bn on offer, a subscription rate of 206%. The government accepted KES 9.1bn, or 63% of what was bid.
The 91-day paper drew the most interest relative to its size, at 209% 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 4,613 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 104,613 after 6 months: KES 4,613 in interest after 15% withholding tax (KES 5,427 before), about KES 769 a month.
For shorter money: KES 2,175 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 104,613 baada ya miezi 6: riba ya KES 4,613 baada ya kodi ya zuio ya 15% (KES 5,427 kabla ya kodi), yaani takriban KES 769 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 | 10.237% | 9.945% | KES 4.00bn | KES 8.38bn | 209% | KES 4.40bn | 97.511 |
| 182-day | 10.854% | — | KES 3.00bn | KES 6.07bn | 202% | KES 4.74bn | 94.866 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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