Kenya Treasury bills · auction of 23 May 2016
Kenya T-bill auction, 23 May 2016: 91-day at 7.998%, down 19 bps
At the Treasury bill auction dated 23 May 2016, the Central Bank of Kenya cleared the 91-day bill at 7.998% (down 19 basis points), the 182-day bill at 10.137% (down 14 basis points) and the 364-day bill at 11.570% (down 12 basis points).
The auction was fully subscribed: bids totalled KES 23.2bn against KES 16.0bn on offer, a subscription rate of 145%. The government accepted KES 16.9bn, or 73% of what was bid.
The 91-day paper drew the most interest relative to its size, at 182% subscribed.
At 7.998%, the 91-day rate is the lowest in the 51 auctions of the past year.
What this means for KES 100,000
Worked from the published rate · information, not advice
KES 9,835 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 109,835 after 12 months: KES 9,835 in interest after 15% withholding tax (KES 11,570 before), about KES 820 a month.
That is KES 101 less than the same money would have earned at the previous auction.
For shorter money: KES 4,308 on the 182-day bill (6 months), KES 1,700 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 109,835 baada ya miezi 12: riba ya KES 9,835 baada ya kodi ya zuio ya 15% (KES 11,570 kabla ya kodi), yaani takriban KES 820 kwa mwezi.
Hiyo ni KES 101 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 | 7.998% | 8.189% | KES 4.00bn | KES 7.29bn | 182% | KES 4.80bn | — |
| 182-day | 10.137% | 10.273% | KES 6.00bn | KES 8.47bn | 141% | KES 6.10bn | 95.189 |
| 364-day | 11.570% | 11.689% | KES 6.00bn | KES 7.46bn | 124% | KES 6.00bn | 89.655 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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