Kenya Treasury bills · auction of 5 October 2015
Kenya T-bill auction, 5 October 2015: 91-day at 20.637%, up 203 bps
At the Treasury bill auction dated 5 October 2015, the Central Bank of Kenya cleared the 91-day bill at 20.637% (up 203 basis points), the 182-day bill at 20.331% (up 578 basis points) and the 364-day bill at 20.695% (up 439 basis points).
The auction was fully subscribed: bids totalled KES 14.4bn against KES 12.0bn on offer, a subscription rate of 120%. The government accepted KES 13.3bn, or 92% of what was bid.
The 91-day paper drew the most interest relative to its size, at 217% subscribed.
At 20.637%, 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 17,591 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 117,591 after 12 months: KES 17,591 in interest after 15% withholding tax (KES 20,695 before), about KES 1,466 a month.
That is KES 3,735 more than the same money would have earned at the previous auction.
For shorter money: KES 8,641 on the 182-day bill (6 months), KES 4,385 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 117,591 baada ya miezi 12: riba ya KES 17,591 baada ya kodi ya zuio ya 15% (KES 20,695 kabla ya kodi), yaani takriban KES 1,466 kwa mwezi.
Hiyo ni KES 3,735 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 | 20.637% | 18.607% | KES 4.00bn | KES 8.68bn | 217% | KES 7.68bn | — |
| 182-day | 20.331% | 14.551% | KES 4.00bn | KES 2.60bn | 65% | KES 2.60bn | 90.795 |
| 364-day | 20.695% | 16.301% | KES 4.00bn | KES 3.17bn | 79% | KES 3.04bn | 82.892 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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