Kenya Treasury bills · auction of 26 December 2016
Kenya T-bill auction, 26 December 2016: 182-day at 10.493%, down 7 bps
At the Treasury bill auction dated 26 December 2016, the Central Bank of Kenya cleared the 182-day bill at 10.493% (down 7 basis points) and the 364-day bill at 11.024% (down 3 basis points).
The auction was fully subscribed: bids totalled KES 18.0bn against KES 12.0bn on offer, a subscription rate of 150%. The government accepted KES 13.2bn, or 74% of what was bid.
The 182-day paper drew the most interest relative to its size, at 264% subscribed.
Over the past year the 182-day rate has ranged from 9.239% to 14.380%.
What this means for KES 100,000
Worked from the published rate · information, not advice
KES 9,370 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 109,370 after 12 months: KES 9,370 in interest after 15% withholding tax (KES 11,024 before), about KES 781 a month.
That is KES 25 less than the same money would have earned at the previous auction.
For shorter money: KES 4,460 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 109,370 baada ya miezi 12: riba ya KES 9,370 baada ya kodi ya zuio ya 15% (KES 11,024 kabla ya kodi), yaani takriban KES 781 kwa mwezi.
Hiyo ni KES 25 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 |
|---|---|---|---|---|---|---|---|
| 182-day | 10.493% | 10.560% | KES 6.00bn | KES 15.84bn | 264% | KES 11.27bn | 95.028 |
| 364-day | 11.024% | 11.053% | KES 6.00bn | KES 2.12bn | 35% | KES 1.95bn | 90.095 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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