Kenya Treasury bills · auction of 4 March 2013
Kenya T-bill auction, 4 March 2013: 91-day at 9.368%, up 44 bps
At the Treasury bill auction dated 4 March 2013, the Central Bank of Kenya cleared the 91-day bill at 9.368% (up 44 basis points), the 182-day bill at 9.084% and the 364-day bill at 12.362%.
The auction was fully subscribed: bids totalled KES 18.5bn against KES 15.0bn on offer, a subscription rate of 123%. The government accepted KES 12.7bn, or 69% of what was bid.
The 91-day paper drew the most interest relative to its size, at 220% subscribed.
Over the past year the 91-day rate has ranged from 7.515% to 17.983%.
What this means for KES 100,000
Worked from the published rate · information, not advice
KES 10,508 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 110,508 after 12 months: KES 10,508 in interest after 15% withholding tax (KES 12,362 before), about KES 876 a month.
For shorter money: KES 3,861 on the 182-day bill (6 months), KES 1,991 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 110,508 baada ya miezi 12: riba ya KES 10,508 baada ya kodi ya zuio ya 15% (KES 12,362 kabla ya kodi), yaani takriban KES 876 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 | 9.368% | 8.928% | KES 4.00bn | KES 8.81bn | 220% | KES 5.84bn | 97.718 |
| 182-day | 9.084% | — | KES 4.00bn | KES 1.35bn | 34% | KES 0.88bn | 95.667 |
| 364-day | 12.362% | — | KES 7.00bn | KES 8.29bn | 118% | KES 5.95bn | 89.025 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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