Kenya Treasury bills · auction of 13 October 2014
Kenya T-bill auction, 13 October 2014: 182-day at 8.913%, up 17 bps
At the Treasury bill auction dated 13 October 2014, the Central Bank of Kenya cleared the 182-day bill at 8.913% (up 17 basis points) and the 364-day bill at 10.327% (down 5 basis points).
The auction was fully subscribed: bids totalled KES 10.0bn against KES 9.0bn on offer, a subscription rate of 111%. The government accepted KES 9.5bn, or 95% of what was bid.
The 364-day paper drew the most interest relative to its size, at 173% subscribed.
Over the past year the 182-day rate has ranged from 8.550% to 11.585%.
What this means for KES 100,000
Worked from the published rate · information, not advice
KES 8,778 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 108,778 after 12 months: KES 8,778 in interest after 15% withholding tax (KES 10,327 before), about KES 731 a month.
That is KES 45 less than the same money would have earned at the previous auction.
For shorter money: KES 3,788 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 108,778 baada ya miezi 12: riba ya KES 8,778 baada ya kodi ya zuio ya 15% (KES 10,327 kabla ya kodi), yaani takriban KES 731 kwa mwezi.
Hiyo ni KES 45 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 | 8.913% | 8.742% | KES 4.00bn | KES 1.30bn | 33% | KES 1.30bn | 95.745 |
| 364-day | 10.327% | 10.380% | KES 5.00bn | KES 8.65bn | 173% | KES 8.18bn | 90.663 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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