Kenya Treasury bills · auction of 11 November 2013
Kenya T-bill auction, 11 November 2013: 91-day at 9.999%, up 2 bps
At the Treasury bill auction dated 11 November 2013, the Central Bank of Kenya cleared the 91-day bill at 9.999% (up 2 basis points), the 182-day bill at 10.559% (up 6 basis points) and the 364-day bill at 10.994% (up 4 basis points).
The auction was undersubscribed: bids totalled KES 6.6bn against KES 7.0bn on offer, a subscription rate of 94%. The government accepted KES 5.9bn, or 90% of what was bid.
The 91-day paper drew the most interest relative to its size, at 104% subscribed.
Over the past year the 91-day rate has ranged from 5.110% to 10.541%.
What this means for KES 100,000
Worked from the published rate · information, not advice
KES 9,345 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 109,345 after 12 months: KES 9,345 in interest after 15% withholding tax (KES 10,994 before), about KES 779 a month.
That is KES 35 more than the same money would have earned at the previous auction.
For shorter money: KES 4,488 on the 182-day bill (6 months), KES 2,125 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 109,345 baada ya miezi 12: riba ya KES 9,345 baada ya kodi ya zuio ya 15% (KES 10,994 kabla ya kodi), yaani takriban KES 779 kwa mwezi.
Hiyo ni KES 35 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 | 9.999% | 9.984% | KES 2.00bn | KES 2.07bn | 104% | KES 1.87bn | — |
| 182-day | 10.559% | 10.502% | KES 2.50bn | KES 1.98bn | 79% | KES 1.82bn | 94.998 |
| 364-day | 10.994% | 10.953% | KES 2.50bn | KES 2.51bn | 100% | KES 2.24bn | 90.119 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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