Kenya Treasury bills · auction of 8 May 2017
Kenya T-bill auction, 8 May 2017: 91-day at 8.759%, down 2 bps
At the Treasury bill auction dated 8 May 2017, the Central Bank of Kenya cleared the 91-day bill at 8.759% (down 2 basis points) and the 182-day bill at 10.926% (down 1 basis point).
Demand was strong: bids totalled KES 37.2bn against KES 14.0bn on offer, a subscription rate of 266%. The government accepted KES 24.0bn, or 65% of what was bid.
The 91-day paper drew the most interest relative to its size, at 296% subscribed.
Over the past year the 91-day rate has ranged from 7.027% to 8.779%.
What this means for KES 100,000
Worked from the published rate · information, not advice
KES 4,644 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 104,644 after 6 months: KES 4,644 in interest after 15% withholding tax (KES 5,463 before), about KES 774 a month.
That is KES 5 less than the same money would have earned at the previous auction.
For shorter money: KES 1,861 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 104,644 baada ya miezi 6: riba ya KES 4,644 baada ya kodi ya zuio ya 15% (KES 5,463 kabla ya kodi), yaani takriban KES 774 kwa mwezi.
Hiyo ni KES 5 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 | 8.759% | 8.778% | KES 4.00bn | KES 11.83bn | 296% | KES 3.60bn | 97.863 |
| 182-day | 10.926% | 10.938% | KES 10.00bn | KES 25.38bn | 254% | KES 20.40bn | 95.036 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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