Kenya Treasury bills · auction of 10 April 2017
Kenya T-bill auction, 10 April 2017: 91-day at 8.769%, up 1 bps
At the Treasury bill auction dated 10 April 2017, the Central Bank of Kenya cleared the 91-day bill at 8.769% (up 1 basis point) and the 182-day bill at 10.925% (up 1 basis point).
The auction was fully subscribed: bids totalled KES 29.9bn against KES 20.0bn on offer, a subscription rate of 150%. The government accepted KES 23.7bn, or 79% of what was bid.
The 182-day paper drew the most interest relative to its size, at 174% subscribed.
Over the past year the 91-day rate has ranged from 7.027% to 8.942%.
What this means for KES 100,000
Worked from the published rate · information, not advice
KES 4,643 in 6 months on the 182-day bill, after tax
Put KES 100,000 into the 182-day bill at this auction and you get back KES 104,643 after 6 months: KES 4,643 in interest after 15% withholding tax (KES 5,463 before), about KES 774 a month.
That is KES 3 more than the same money would have earned at the previous auction.
For shorter money: KES 1,863 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 182 kwa riba ya mnada huu, utarudishiwa KES 104,643 baada ya miezi 6: riba ya KES 4,643 baada ya kodi ya zuio ya 15% (KES 5,463 kabla ya kodi), yaani takriban KES 774 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 |
|---|---|---|---|---|---|---|---|
| 91-day | 8.769% | 8.756% | KES 10.00bn | KES 12.51bn | 125% | KES 11.35bn | 97.861 |
| 182-day | 10.925% | 10.919% | KES 10.00bn | KES 17.39bn | 174% | KES 12.30bn | — |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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