Kenya Treasury bills · auction of 13 June 2016
Kenya T-bill auction, 13 June 2016: 91-day at 7.303%, down 17 bps
At the Treasury bill auction dated 13 June 2016, the Central Bank of Kenya cleared the 91-day bill at 7.303% (down 17 basis points), the 182-day bill at 9.648% (down 15 basis points) and the 364-day bill at 10.844% (down 21 basis points).
Demand was strong: bids totalled KES 29.3bn against KES 16.0bn on offer, a subscription rate of 183%. The government accepted KES 17.9bn, or 61% of what was bid.
The 364-day paper drew the most interest relative to its size, at 210% subscribed.
At 7.303%, 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 9,217 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 109,217 after 12 months: KES 9,217 in interest after 15% withholding tax (KES 10,844 before), about KES 768 a month.
That is KES 174 less than the same money would have earned at the previous auction.
For shorter money: KES 4,100 on the 182-day bill (6 months), KES 1,552 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 109,217 baada ya miezi 12: riba ya KES 9,217 baada ya kodi ya zuio ya 15% (KES 10,844 kabla ya kodi), yaani takriban KES 768 kwa mwezi.
Hiyo ni KES 174 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 | 7.303% | 7.477% | KES 4.00bn | KES 6.67bn | 167% | KES 4.67bn | — |
| 182-day | 9.648% | 9.799% | KES 6.00bn | KES 9.97bn | 166% | KES 6.48bn | 95.410 |
| 364-day | 10.844% | 11.049% | KES 6.00bn | KES 12.62bn | 210% | KES 6.75bn | 90.241 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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