Kenya Treasury bills · auction of 23 September 2013
Kenya T-bill auction, 23 September 2013: 182-day at 9.694%, down 39 bps
At the Treasury bill auction dated 23 September 2013, the Central Bank of Kenya cleared the 182-day bill at 9.694% (down 39 basis points) and the 364-day bill at 10.413% (down 34 basis points).
The auction was fully subscribed: bids totalled KES 8.4bn against KES 6.0bn on offer, a subscription rate of 141%. The government accepted KES 8.1bn, or 95% of what was bid.
The 364-day paper drew the most interest relative to its size, at 165% subscribed.
Over the past year the 182-day rate has ranged from 5.549% to 10.923%.
What this means for KES 100,000
Worked from the published rate · information, not advice
KES 8,851 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 108,851 after 12 months: KES 8,851 in interest after 15% withholding tax (KES 10,413 before), about KES 738 a month.
That is KES 292 less than the same money would have earned at the previous auction.
For shorter money: KES 4,120 on the 182-day bill (6 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 108,851 baada ya miezi 12: riba ya KES 8,851 baada ya kodi ya zuio ya 15% (KES 10,413 kabla ya kodi), yaani takriban KES 738 kwa mwezi.
Hiyo ni KES 292 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 |
|---|---|---|---|---|---|---|---|
| 182-day | 9.694% | 10.089% | KES 3.00bn | KES 3.49bn | 116% | KES 3.10bn | 95.389 |
| 364-day | 10.413% | 10.756% | KES 3.00bn | KES 4.95bn | 165% | KES 4.95bn | 90.592 |
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.