Kenya Treasury bills · auction of 14 July 2014
Kenya T-bill auction, 14 July 2014: 91-day at 9.727%, down 168 bps
At the Treasury bill auction dated 14 July 2014, the Central Bank of Kenya cleared the 91-day bill at 9.727% (down 168 basis points), the 182-day bill at 10.970% (down 53 basis points) and the 364-day bill at 11.165% (down 62 basis points).
Demand was strong: bids totalled KES 25.7bn against KES 12.0bn on offer, a subscription rate of 215%. The government accepted KES 8.3bn, or 32% of what was bid.
The 364-day paper drew the most interest relative to its size, at 263% subscribed.
Over the past year the 91-day rate has ranged from 6.293% to 11.438%.
What this means for KES 100,000
Worked from the published rate · information, not advice
KES 9,490 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 109,490 after 12 months: KES 9,490 in interest after 15% withholding tax (KES 11,165 before), about KES 791 a month.
That is KES 530 less than the same money would have earned at the previous auction.
For shorter money: KES 4,662 on the 182-day bill (6 months), KES 2,067 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 109,490 baada ya miezi 12: riba ya KES 9,490 baada ya kodi ya zuio ya 15% (KES 11,165 kabla ya kodi), yaani takriban KES 791 kwa mwezi.
Hiyo ni KES 530 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 | 9.727% | 11.408% | KES 4.00bn | KES 8.44bn | 211% | KES 4.37bn | — |
| 182-day | 10.970% | 11.500% | KES 4.00bn | KES 6.80bn | 170% | KES 1.81bn | 94.814 |
| 364-day | 11.165% | 11.788% | KES 4.00bn | KES 10.50bn | 263% | KES 2.08bn | 89.981 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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