Kenya Treasury bills · auction of 4 July 2016
Kenya T-bill auction, 4 July 2016: 91-day at 7.045%
At the Treasury bill auction dated 4 July 2016, the Central Bank of Kenya cleared the 91-day bill at 7.045%, the 182-day bill at 9.393% (up 15 basis points) and the 364-day bill at 10.676% (down 6 basis points).
The auction was undersubscribed: bids totalled KES 5.9bn against KES 16.0bn on offer, a subscription rate of 37%. The government accepted KES 5.9bn, or 100% of what was bid.
The 91-day paper drew the most interest relative to its size, at 85% subscribed.
At 7.045%, the 91-day rate is the lowest in the 50 auctions of the past year.
What this means for KES 100,000
Worked from the published rate · information, not advice
KES 9,075 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 109,075 after 12 months: KES 9,075 in interest after 15% withholding tax (KES 10,676 before), about KES 756 a month.
That is KES 52 less than the same money would have earned at the previous auction.
For shorter money: KES 3,992 on the 182-day bill (6 months), KES 1,497 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 109,075 baada ya miezi 12: riba ya KES 9,075 baada ya kodi ya zuio ya 15% (KES 10,676 kabla ya kodi), yaani takriban KES 756 kwa mwezi.
Hiyo ni KES 52 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 | 7.045% | — | KES 4.00bn | KES 3.39bn | 85% | KES 3.39bn | — |
| 182-day | 9.393% | 9.239% | KES 6.00bn | KES 1.22bn | 20% | KES 1.22bn | 95.526 |
| 364-day | 10.676% | 10.737% | KES 6.00bn | KES 1.31bn | 22% | KES 1.31bn | 90.378 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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