Kenya Treasury bills · auction of 30 May 2016
Kenya T-bill auction, 30 May 2016: 91-day at 7.711%, down 29 bps
At the Treasury bill auction dated 30 May 2016, the Central Bank of Kenya cleared the 91-day bill at 7.711% (down 29 basis points), the 182-day bill at 9.999% (down 14 basis points) and the 364-day bill at 11.293% (down 28 basis points).
Demand was strong: bids totalled KES 36.8bn against KES 16.0bn on offer, a subscription rate of 230%. The government accepted KES 21.9bn, or 59% of what was bid.
The 364-day paper drew the most interest relative to its size, at 268% subscribed.
At 7.711%, 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 9,599 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 109,599 after 12 months: KES 9,599 in interest after 15% withholding tax (KES 11,293 before), about KES 800 a month.
That is KES 235 less than the same money would have earned at the previous auction.
For shorter money: KES 4,250 on the 182-day bill (6 months), KES 1,639 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 109,599 baada ya miezi 12: riba ya KES 9,599 baada ya kodi ya zuio ya 15% (KES 11,293 kabla ya kodi), yaani takriban KES 800 kwa mwezi.
Hiyo ni KES 235 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 | 7.711% | 7.998% | KES 4.00bn | KES 10.21bn | 255% | KES 7.28bn | — |
| 182-day | 9.999% | 10.137% | KES 6.00bn | KES 10.54bn | 176% | KES 5.40bn | 95.251 |
| 364-day | 11.293% | 11.570% | KES 6.00bn | KES 16.09bn | 268% | KES 9.17bn | 89.878 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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