Kenya Treasury bills · auction of 12 October 2015
Kenya T-bill auction, 12 October 2015: 91-day at 21.353%, up 72 bps
At the Treasury bill auction dated 12 October 2015, the Central Bank of Kenya cleared the 91-day bill at 21.353% (up 72 basis points), the 182-day bill at 21.607% (up 128 basis points) and the 364-day bill at 21.498% (up 80 basis points).
Demand was strong: bids totalled KES 35.4bn against KES 12.0bn on offer, a subscription rate of 295%. The government accepted KES 26.8bn, or 76% of what was bid.
The 91-day paper drew the most interest relative to its size, at 427% subscribed.
At 21.353%, 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 18,273 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 118,273 after 12 months: KES 18,273 in interest after 15% withholding tax (KES 21,498 before), about KES 1,523 a month.
That is KES 683 more than the same money would have earned at the previous auction.
For shorter money: KES 9,183 on the 182-day bill (6 months), KES 4,538 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 118,273 baada ya miezi 12: riba ya KES 18,273 baada ya kodi ya zuio ya 15% (KES 21,498 kabla ya kodi), yaani takriban KES 1,523 kwa mwezi.
Hiyo ni KES 683 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 | 21.353% | 20.637% | KES 4.00bn | KES 17.10bn | 427% | KES 12.64bn | — |
| 182-day | 21.607% | 20.331% | KES 4.00bn | KES 5.67bn | 142% | KES 5.29bn | 90.274 |
| 364-day | 21.498% | 20.695% | KES 4.00bn | KES 12.63bn | 316% | KES 8.91bn | 82.346 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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