Kenya Treasury bills · auction of 3 October 2016
Kenya T-bill auction, 3 October 2016: 91-day at 7.816%, down 7 bps
At the Treasury bill auction dated 3 October 2016, the Central Bank of Kenya cleared the 91-day bill at 7.816% (down 7 basis points), the 182-day bill at 10.416% (down 15 basis points) and the 364-day bill at 10.417% (down 18 basis points).
The auction was fully subscribed: bids totalled KES 20.7bn against KES 16.0bn on offer, a subscription rate of 130%. The government accepted KES 16.8bn, or 81% of what was bid.
The 182-day paper drew the most interest relative to its size, at 145% subscribed.
Over the past year the 91-day rate has ranged from 7.027% to 22.492%.
What this means for KES 100,000
Worked from the published rate · information, not advice
KES 8,854 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 108,854 after 12 months: KES 8,854 in interest after 15% withholding tax (KES 10,417 before), about KES 738 a month.
That is KES 155 less than the same money would have earned at the previous auction.
For shorter money: KES 4,427 on the 182-day bill (6 months), KES 1,661 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 108,854 baada ya miezi 12: riba ya KES 8,854 baada ya kodi ya zuio ya 15% (KES 10,417 kabla ya kodi), yaani takriban KES 738 kwa mwezi.
Hiyo ni KES 155 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 | 7.816% | 7.890% | KES 4.00bn | KES 4.72bn | 118% | KES 4.20bn | — |
| 182-day | 10.416% | 10.568% | KES 6.00bn | KES 8.68bn | 145% | KES 5.31bn | 95.063 |
| 364-day | 10.417% | 10.599% | KES 6.00bn | KES 7.33bn | 122% | KES 7.33bn | 90.589 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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