Kenya Treasury bills · auction of 25 May 2015
Kenya T-bill auction, 25 May 2015: 91-day at 8.124%, down 4 bps
At the Treasury bill auction dated 25 May 2015, the Central Bank of Kenya cleared the 91-day bill at 8.124% (down 4 basis points), the 182-day bill at 10.550% (up 20 basis points) and the 364-day bill at 10.808% (up 4 basis points).
The auction was undersubscribed: bids totalled KES 3.3bn against KES 8.0bn on offer, a subscription rate of 41%. The government accepted KES 3.3bn, or 100% of what was bid.
The 91-day paper drew the most interest relative to its size, at 266% subscribed.
At 8.124%, the 91-day rate is the lowest in the 52 auctions of the past year.
What this means for KES 100,000
Worked from the published rate · information, not advice
KES 9,187 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 109,187 after 12 months: KES 9,187 in interest after 15% withholding tax (KES 10,808 before), about KES 766 a month.
That is KES 34 more than the same money would have earned at the previous auction.
For shorter money: KES 4,484 on the 182-day bill (6 months), KES 1,726 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 109,187 baada ya miezi 12: riba ya KES 9,187 baada ya kodi ya zuio ya 15% (KES 10,808 kabla ya kodi), yaani takriban KES 766 kwa mwezi.
Hiyo ni KES 34 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 | 8.124% | 8.167% | KES 1.00bn | KES 2.66bn | 266% | KES 2.66bn | — |
| 182-day | 10.550% | 10.348% | KES 3.00bn | KES 0.27bn | 9% | KES 0.27bn | 95.002 |
| 364-day | 10.808% | 10.768% | KES 4.00bn | KES 0.36bn | 9% | KES 0.36bn | 90.270 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
Free, every weekday at 7:00
The Afronomics Morning
Every Monday: the week's auctions, currencies and the stories that moved African markets. Free.