Kenya Treasury bills · auction of 13 May 2013
Kenya T-bill auction, 13 May 2013: 91-day at 9.887%, down 22 bps
At the Treasury bill auction dated 13 May 2013, the Central Bank of Kenya cleared the 91-day bill at 9.887% (down 22 basis points), the 182-day bill at 10.279% (down 21 basis points) and the 364-day bill at 11.780% (down 35 basis points).
Demand was strong: bids totalled KES 25.3bn against KES 11.0bn on offer, a subscription rate of 230%. The government accepted KES 8.5bn, or 34% of what was bid.
The 364-day paper drew the most interest relative to its size, at 388% subscribed.
Over the past year the 91-day rate has ranged from 7.515% to 13.226%.
What this means for KES 100,000
Worked from the published rate · information, not advice
KES 10,013 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 110,013 after 12 months: KES 10,013 in interest after 15% withholding tax (KES 11,780 before), about KES 834 a month.
That is KES 295 less than the same money would have earned at the previous auction.
For shorter money: KES 4,369 on the 182-day bill (6 months), KES 2,101 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 110,013 baada ya miezi 12: riba ya KES 10,013 baada ya kodi ya zuio ya 15% (KES 11,780 kabla ya kodi), yaani takriban KES 834 kwa mwezi.
Hiyo ni KES 295 pungufu 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 | 9.887% | 10.104% | KES 3.00bn | KES 3.41bn | 114% | KES 1.89bn | — |
| 182-day | 10.279% | 10.489% | KES 3.00bn | KES 2.45bn | 82% | KES 2.45bn | 95.124 |
| 364-day | 11.780% | 12.127% | KES 5.00bn | KES 19.40bn | 388% | KES 4.21bn | 89.487 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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