Kenya Treasury bills · auction of 30 November 2015
Kenya T-bill auction, 30 November 2015: 91-day at 9.210%, down 37 bps
At the Treasury bill auction dated 30 November 2015, the Central Bank of Kenya cleared the 91-day bill at 9.210% (down 37 basis points), the 182-day bill at 10.092% (down 11 basis points) and the 364-day bill at 11.934% (down 15 basis points).
The auction was undersubscribed: bids totalled KES 6.1bn against KES 16.0bn on offer, a subscription rate of 38%. The government accepted KES 5.6bn, or 92% of what was bid.
The 91-day paper drew the most interest relative to its size, at 112% subscribed.
Over the past year the 91-day rate has ranged from 8.124% to 22.492%.
What this means for KES 100,000
Worked from the published rate · information, not advice
KES 10,144 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 110,144 after 12 months: KES 10,144 in interest after 15% withholding tax (KES 11,934 before), about KES 845 a month.
That is KES 129 less than the same money would have earned at the previous auction.
For shorter money: KES 4,289 on the 182-day bill (6 months), KES 1,957 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 110,144 baada ya miezi 12: riba ya KES 10,144 baada ya kodi ya zuio ya 15% (KES 11,934 kabla ya kodi), yaani takriban KES 845 kwa mwezi.
Hiyo ni KES 129 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 | 9.210% | 9.578% | KES 4.00bn | KES 4.48bn | 112% | KES 3.99bn | — |
| 182-day | 10.092% | 10.203% | KES 6.00bn | KES 0.47bn | 8% | KES 0.47bn | 95.209 |
| 364-day | 11.934% | 12.086% | KES 6.00bn | KES 1.16bn | 19% | KES 1.16bn | 89.364 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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