Kenya Treasury bills · auction of 16 July 2015
Kenya T-bill auction, 16 July 2015: 182-day at 12.051%
At the Treasury bill auction dated 16 July 2015, the Central Bank of Kenya cleared the 182-day bill at 12.051% and the 364-day bill at 11.137%.
The auction was undersubscribed: bids totalled KES 1.5bn against KES 7.0bn on offer, a subscription rate of 22%. The government accepted KES 1.1bn, or 70% of what was bid.
The 182-day paper drew the most interest relative to its size, at 41% subscribed.
At 12.051%, the 182-day rate is the highest in the 54 auctions of the past year.
What this means for KES 100,000
Worked from the published rate · information, not advice
KES 9,466 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 109,466 after 12 months: KES 9,466 in interest after 15% withholding tax (KES 11,137 before), about KES 789 a month.
For shorter money: KES 5,122 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 109,466 baada ya miezi 12: riba ya KES 9,466 baada ya kodi ya zuio ya 15% (KES 11,137 kabla ya kodi), yaani takriban KES 789 kwa mwezi.
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 | 12.051% | — | KES 3.00bn | KES 1.22bn | 41% | KES 0.75bn | 94.332 |
| 364-day | 11.137% | — | KES 4.00bn | KES 0.32bn | 8% | KES 0.32bn | 90.004 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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