Kenya Treasury bills · auction of 27 June 2016
Kenya T-bill auction, 27 June 2016: 182-day at 9.239%, down 31 bps
At the Treasury bill auction dated 27 June 2016, the Central Bank of Kenya cleared the 182-day bill at 9.239% (down 31 basis points) and the 364-day bill at 10.737% (unchanged).
The auction was fully subscribed: bids totalled KES 14.2bn against KES 12.0bn on offer, a subscription rate of 118%. The government accepted KES 13.7bn, or 97% of what was bid.
The 182-day paper drew the most interest relative to its size, at 179% subscribed.
At 9.239%, the 182-day rate is the lowest in the 53 auctions of the past year.
What this means for KES 100,000
Worked from the published rate · information, not advice
KES 9,126 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 109,126 after 12 months: KES 9,126 in interest after 15% withholding tax (KES 10,737 before), about KES 761 a month.
That is KES 3 more than the same money would have earned at the previous auction.
For shorter money: KES 3,927 on the 182-day bill (6 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 109,126 baada ya miezi 12: riba ya KES 9,126 baada ya kodi ya zuio ya 15% (KES 10,737 kabla ya kodi), yaani takriban KES 761 kwa mwezi.
Hiyo ni KES 3 zaidi 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 | 9.239% | 9.545% | KES 6.00bn | KES 10.74bn | 179% | KES 10.27bn | 95.596 |
| 364-day | 10.737% | 10.734% | KES 6.00bn | KES 3.45bn | 58% | KES 3.45bn | 90.328 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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