Kenya Treasury bills · auction of 13 July 2015
Kenya T-bill auction, 13 July 2015: 91-day at 11.285%, up 312 bps
At the Treasury bill auction dated 13 July 2015, the Central Bank of Kenya cleared the 91-day bill at 11.285% (up 312 basis points).
The auction was undersubscribed: bids totalled KES 1.2bn against KES 2.0bn on offer, a subscription rate of 59%. The government accepted KES 1.2bn, or 100% of what was bid.
At 11.285%, the 91-day rate is the highest in the 52 auctions of the past year.
What this means for KES 100,000
Worked from the published rate · information, not advice
KES 2,398 in 3 months on the 91-day bill, after tax
Put KES 100,000 into the 91-day bill at this auction and you get back KES 102,398 after 3 months: KES 2,398 in interest after 15% withholding tax (KES 2,821 before), about KES 799 a month.
That is KES 663 more than the same money would have earned at the previous auction.
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 91 kwa riba ya mnada huu, utarudishiwa KES 102,398 baada ya miezi 3: riba ya KES 2,398 baada ya kodi ya zuio ya 15% (KES 2,821 kabla ya kodi), yaani takriban KES 799 kwa mwezi.
Hiyo ni KES 663 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 | 11.285% | 8.165% | KES 2.00bn | KES 1.19bn | 59% | KES 1.18bn | — |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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