Kenya Treasury bills · auction of 3 December 2012
Kenya T-bill auction, 3 December 2012: 91-day at 8.445%, down 54 bps
At the Treasury bill auction dated 3 December 2012, the Central Bank of Kenya cleared the 91-day bill at 8.445% (down 54 basis points), the 182-day bill at 9.336% (down 44 basis points) and the 364-day bill at 11.709%.
The auction was fully subscribed: bids totalled KES 17.5bn against KES 14.0bn on offer, a subscription rate of 125%. The government accepted KES 16.0bn, or 91% of what was bid.
The 91-day paper drew the most interest relative to its size, at 196% 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 9,953 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 109,953 after 12 months: KES 9,953 in interest after 15% withholding tax (KES 11,709 before), about KES 829 a month.
For shorter money: KES 3,968 on the 182-day bill (6 months), KES 1,795 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 109,953 baada ya miezi 12: riba ya KES 9,953 baada ya kodi ya zuio ya 15% (KES 11,709 kabla ya kodi), yaani takriban KES 829 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 | 8.445% | 8.987% | KES 4.00bn | KES 7.86bn | 196% | KES 6.44bn | 97.938 |
| 182-day | 9.336% | 9.773% | KES 4.00bn | KES 3.78bn | 94% | KES 3.78bn | 95.552 |
| 364-day | 11.709% | — | KES 6.00bn | KES 5.90bn | 98% | KES 5.80bn | 89.544 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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