Kenya Treasury bills · auction of 11 August 2014
Kenya T-bill auction, 11 August 2014: 91-day at 8.244%, down 23 bps
At the Treasury bill auction dated 11 August 2014, the Central Bank of Kenya cleared the 91-day bill at 8.244% (down 23 basis points), the 182-day bill at 8.700% (down 60 basis points) and the 364-day bill at 10.273% (down 6 basis points).
The auction was undersubscribed: bids totalled KES 8.0bn against KES 12.0bn on offer, a subscription rate of 67%. The government accepted KES 6.4bn, or 80% of what was bid.
The 364-day paper drew the most interest relative to its size, at 160% subscribed.
At 8.244%, the 91-day rate is the lowest in the 47 auctions of the past year.
What this means for KES 100,000
Worked from the published rate · information, not advice
KES 8,732 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 108,732 after 12 months: KES 8,732 in interest after 15% withholding tax (KES 10,273 before), about KES 728 a month.
That is KES 48 less than the same money would have earned at the previous auction.
For shorter money: KES 3,698 on the 182-day bill (6 months), KES 1,752 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 108,732 baada ya miezi 12: riba ya KES 8,732 baada ya kodi ya zuio ya 15% (KES 10,273 kabla ya kodi), yaani takriban KES 728 kwa mwezi.
Hiyo ni KES 48 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 | 8.244% | 8.475% | KES 4.00bn | KES 1.01bn | 25% | KES 0.91bn | — |
| 182-day | 8.700% | 9.296% | KES 4.00bn | KES 0.56bn | 14% | KES 0.46bn | 95.842 |
| 364-day | 10.273% | 10.330% | KES 4.00bn | KES 6.41bn | 160% | KES 5.03bn | 90.707 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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