Kenya Treasury bills · auction of 22 April 2013
Kenya T-bill auction, 22 April 2013: 91-day at 10.258%
At the Treasury bill auction dated 22 April 2013, the Central Bank of Kenya cleared the 91-day bill at 10.258%, the 182-day bill at 10.637% (up 83 basis points) and the 364-day bill at 12.405% (up 229 basis points).
Demand was strong: bids totalled KES 30.7bn against KES 11.0bn on offer, a subscription rate of 279%. The government accepted KES 20.3bn, or 66% of what was bid.
The 364-day paper drew the most interest relative to its size, at 459% subscribed.
Over the past year the 91-day rate has ranged from 7.515% to 14.992%.
What this means for KES 100,000
Worked from the published rate · information, not advice
KES 10,544 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 110,544 after 12 months: KES 10,544 in interest after 15% withholding tax (KES 12,405 before), about KES 879 a month.
That is KES 1,950 more than the same money would have earned at the previous auction.
For shorter money: KES 4,521 on the 182-day bill (6 months), KES 2,180 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 110,544 baada ya miezi 12: riba ya KES 10,544 baada ya kodi ya zuio ya 15% (KES 12,405 kabla ya kodi), yaani takriban KES 879 kwa mwezi.
Hiyo ni KES 1,950 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 | 10.258% | — | KES 3.00bn | KES 5.82bn | 194% | KES 4.53bn | 97.506 |
| 182-day | 10.637% | 9.812% | KES 3.00bn | KES 1.97bn | 66% | KES 1.93bn | 94.963 |
| 364-day | 12.405% | 10.111% | KES 5.00bn | KES 22.95bn | 459% | KES 13.88bn | 88.991 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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