Kenya Treasury bills · auction of 10 August 2015
Kenya T-bill auction, 10 August 2015: 91-day at 11.570%, up 3 bps
At the Treasury bill auction dated 10 August 2015, the Central Bank of Kenya cleared the 91-day bill at 11.570% (up 3 basis points), the 182-day bill at 11.828% (down 10 basis points) and the 364-day bill at 13.133% (down 37 basis points).
The auction was undersubscribed: bids totalled KES 9.8bn against KES 11.0bn on offer, a subscription rate of 89%. The government accepted KES 6.0bn, or 61% of what was bid.
The 364-day paper drew the most interest relative to its size, at 174% subscribed.
At 11.570%, 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 11,163 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 111,163 after 12 months: KES 11,163 in interest after 15% withholding tax (KES 13,133 before), about KES 930 a month.
That is KES 312 less than the same money would have earned at the previous auction.
For shorter money: KES 5,027 on the 182-day bill (6 months), KES 2,459 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 111,163 baada ya miezi 12: riba ya KES 11,163 baada ya kodi ya zuio ya 15% (KES 13,133 kabla ya kodi), yaani takriban KES 930 kwa mwezi.
Hiyo ni KES 312 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 | 11.570% | 11.539% | KES 3.00bn | KES 2.14bn | 71% | KES 0.69bn | — |
| 182-day | 11.828% | 11.929% | KES 4.00bn | KES 0.72bn | 18% | KES 0.21bn | 94.431 |
| 364-day | 13.133% | 13.500% | KES 4.00bn | KES 6.96bn | 174% | KES 5.13bn | 88.420 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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