Kenya Treasury bills · auction of 2 January 2016
Kenya T-bill auction, 2 January 2016: 182-day at 10.475%, down 186 bps
At the Treasury bill auction dated 2 January 2016, the Central Bank of Kenya cleared the 182-day bill at 10.475% (down 186 basis points).
The auction was undersubscribed: bids totalled KES 2.1bn against KES 6.0bn on offer, a subscription rate of 36%. The government accepted KES 1.1bn, or 54% of what was bid.
Over the past year the 182-day rate has ranged from 10.048% to 22.291%.
What this means for KES 100,000
Worked from the published rate · information, not advice
KES 4,452 in 6 months on the 182-day bill, after tax
Put KES 100,000 into the 182-day bill at this auction and you get back KES 104,452 after 6 months: KES 4,452 in interest after 15% withholding tax (KES 5,238 before), about KES 742 a month.
That is KES 791 less than the same money would have earned at the previous auction.
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 182 kwa riba ya mnada huu, utarudishiwa KES 104,452 baada ya miezi 6: riba ya KES 4,452 baada ya kodi ya zuio ya 15% (KES 5,238 kabla ya kodi), yaani takriban KES 742 kwa mwezi.
Hiyo ni KES 791 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 | 10.475% | 12.336% | KES 6.00bn | KES 2.14bn | 36% | KES 1.15bn | 95.036 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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