Kenya Treasury bills · auction of 24 April 2017
Kenya T-bill auction, 24 April 2017: 91-day at 8.779%, up 1 bps
At the Treasury bill auction dated 24 April 2017, the Central Bank of Kenya cleared the 91-day bill at 8.779% (up 1 basis point) and the 182-day bill at 10.924% (unchanged).
Demand was strong: bids totalled KES 33.3bn against KES 20.0bn on offer, a subscription rate of 167%. The government accepted KES 26.1bn, or 78% of what was bid.
The 182-day paper drew the most interest relative to its size, at 197% subscribed.
At 8.779%, the 91-day rate is the highest in the 50 auctions of the past year.
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 5,462 before), about KES 774 a month.
That is the same as at the previous auction.
For shorter money: KES 1,866 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 5,462 kabla ya kodi), yaani takriban KES 774 kwa mwezi.
Ni sawa na 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 | 8.779% | 8.773% | KES 10.00bn | KES 13.67bn | 137% | KES 6.67bn | 97.858 |
| 182-day | 10.924% | 10.925% | KES 10.00bn | KES 19.66bn | 197% | KES 19.43bn | — |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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