Kenya Treasury bills · auction of 2 November 2015
Kenya T-bill auction, 2 November 2015: 182-day at 21.028%, down 126 bps
At the Treasury bill auction dated 2 November 2015, the Central Bank of Kenya cleared the 182-day bill at 21.028% (down 126 basis points) and the 364-day bill at 21.212% (down 115 basis points).
Demand was strong: bids totalled KES 60.1bn against KES 8.0bn on offer, a subscription rate of 751%. The government accepted KES 12.7bn, or 21% of what was bid.
The 364-day paper drew the most interest relative to its size, at 1023% subscribed.
Over the past year the 182-day rate has ranged from 9.183% to 22.291%.
What this means for KES 100,000
Worked from the published rate · information, not advice
KES 18,030 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 118,030 after 12 months: KES 18,030 in interest after 15% withholding tax (KES 21,212 before), about KES 1,503 a month.
That is KES 978 less than the same money would have earned at the previous auction.
For shorter money: KES 8,937 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 118,030 baada ya miezi 12: riba ya KES 18,030 baada ya kodi ya zuio ya 15% (KES 21,212 kabla ya kodi), yaani takriban KES 1,503 kwa mwezi.
Hiyo ni KES 978 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 |
|---|---|---|---|---|---|---|---|
| 182-day | 21.028% | 22.291% | KES 4.00bn | KES 19.20bn | 480% | KES 5.60bn | 90.510 |
| 364-day | 21.212% | 22.363% | KES 4.00bn | KES 40.90bn | 1023% | KES 7.07bn | 82.540 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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