Kenya Treasury bills · auction of 21 September 2015
Kenya T-bill auction, 21 September 2015: 91-day at 14.486%, up 63 bps
At the Treasury bill auction dated 21 September 2015, the Central Bank of Kenya cleared the 91-day bill at 14.486% (up 63 basis points), the 182-day bill at 13.861% (up 98 basis points) and the 364-day bill at 15.768% (up 82 basis points).
The auction was undersubscribed: bids totalled KES 6.8bn against KES 12.0bn on offer, a subscription rate of 57%. The government accepted KES 5.8bn, or 84% of what was bid.
The 91-day paper drew the most interest relative to its size, at 95% subscribed.
At 14.486%, the 91-day rate is the highest in the 51 auctions of the past year.
What this means for KES 100,000
Worked from the published rate · information, not advice
KES 13,403 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 113,403 after 12 months: KES 13,403 in interest after 15% withholding tax (KES 15,768 before), about KES 1,117 a month.
That is KES 697 more than the same money would have earned at the previous auction.
For shorter money: KES 5,891 on the 182-day bill (6 months), KES 3,078 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 113,403 baada ya miezi 12: riba ya KES 13,403 baada ya kodi ya zuio ya 15% (KES 15,768 kabla ya kodi), yaani takriban KES 1,117 kwa mwezi.
Hiyo ni KES 697 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 | 14.486% | 13.858% | KES 4.00bn | KES 3.78bn | 95% | KES 3.06bn | — |
| 182-day | 13.861% | 12.877% | KES 4.00bn | KES 0.35bn | 9% | KES 0.35bn | 93.535 |
| 364-day | 15.768% | 14.948% | KES 4.00bn | KES 2.71bn | 68% | KES 2.36bn | 86.412 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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