Kenya Treasury bills · auction of 23 June 2014
Kenya T-bill auction, 23 June 2014: 91-day at 10.250%, up 97 bps
At the Treasury bill auction dated 23 June 2014, the Central Bank of Kenya cleared the 91-day bill at 10.250% (up 97 basis points), the 182-day bill at 10.711% (up 39 basis points) and the 364-day bill at 10.981% (up 74 basis points).
The auction was fully subscribed: bids totalled KES 15.7bn against KES 12.0bn on offer, a subscription rate of 131%. The government accepted KES 13.3bn, or 85% of what was bid.
The 91-day paper drew the most interest relative to its size, at 288% subscribed.
Over the past year the 91-day rate has ranged from 5.175% to 10.498%.
What this means for KES 100,000
Worked from the published rate · information, not advice
KES 9,334 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 109,334 after 12 months: KES 9,334 in interest after 15% withholding tax (KES 10,981 before), about KES 778 a month.
That is KES 631 more than the same money would have earned at the previous auction.
For shorter money: KES 4,552 on the 182-day bill (6 months), KES 2,178 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 109,334 baada ya miezi 12: riba ya KES 9,334 baada ya kodi ya zuio ya 15% (KES 10,981 kabla ya kodi), yaani takriban KES 778 kwa mwezi.
Hiyo ni KES 631 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 | 10.250% | 9.275% | KES 4.00bn | KES 11.53bn | 288% | KES 9.10bn | — |
| 182-day | 10.711% | 10.323% | KES 4.00bn | KES 2.73bn | 68% | KES 2.73bn | 94.930 |
| 364-day | 10.981% | 10.239% | KES 4.00bn | KES 1.44bn | 36% | KES 1.44bn | 90.130 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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