Kenya Treasury bills · auction of 25 February 2013
Kenya T-bill auction, 25 February 2013: 91-day at 8.928%, up 72 bps
At the Treasury bill auction dated 25 February 2013, the Central Bank of Kenya cleared the 91-day bill at 8.928% (up 72 basis points).
The auction was undersubscribed: bids totalled KES 1.8bn against KES 4.0bn on offer, a subscription rate of 46%. The government accepted KES 1.8bn, or 100% of what was bid.
Over the past year the 91-day rate has ranged from 7.515% to 18.745%.
What this means for KES 100,000
Worked from the published rate · information, not advice
KES 1,897 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 101,897 after 3 months: KES 1,897 in interest after 15% withholding tax (KES 2,232 before), about KES 632 a month.
That is KES 152 more 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 101,897 baada ya miezi 3: riba ya KES 1,897 baada ya kodi ya zuio ya 15% (KES 2,232 kabla ya kodi), yaani takriban KES 632 kwa mwezi.
Hiyo ni KES 152 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 | 8.928% | 8.213% | KES 4.00bn | KES 1.83bn | 46% | KES 1.83bn | 97.823 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
Free, every weekday at 7:00
The Afronomics Morning
Every Monday: the week's auctions, currencies and the stories that moved African markets. Free.