Kenya Treasury bills · auction of 2 January 2017
Kenya T-bill auction, 2 January 2017: 91-day at 8.553%
At the Treasury bill auction dated 2 January 2017, the Central Bank of Kenya cleared the 91-day bill at 8.553%.
The auction was undersubscribed: bids totalled KES 1.4bn against KES 4.0bn on offer, a subscription rate of 34%. The government accepted KES 1.4bn, or 100% of what was bid.
Over the past year the 91-day rate has ranged from 7.027% to 11.756%.
What this means for KES 100,000
Worked from the published rate · information, not advice
KES 1,818 in 3 months on the 91-day bill, after tax
Put KES 100,000 into the 91-day bill at this auction and you get back KES 101,818 after 3 months: KES 1,818 in interest after 15% withholding tax (KES 2,138 before), about KES 606 a month.
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 91 kwa riba ya mnada huu, utarudishiwa KES 101,818 baada ya miezi 3: riba ya KES 1,818 baada ya kodi ya zuio ya 15% (KES 2,138 kabla ya kodi), yaani takriban KES 606 kwa mwezi.
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 | 8.553% | — | KES 4.00bn | KES 1.37bn | 34% | KES 1.37bn | — |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
Free, every weekday at 7:00
The Afronomics Morning
Every Monday: the week's auctions, currencies and the stories that moved African markets. Free.