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CBK T Bill returns
Rank: Member Joined: 1/29/2007 Posts: 70
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It would appear the CBK does not pay the interest rates they claim to pay for T Bills and Bonds. As an example if you invest 100K on 364 days at 20% pa after 15% w/h tax you will get an interest of Ksh 14,134.65 Please use this CBK link to confirm my figures: http://www.centralbank.g...uryBillsCalculator.aspx
Accordintg to my calculations the interst should be KSH 16,953.424 after 15% w/h Tax(allowing for the 364 days instead of 365 in a year) Someone enlighten me please, better Mark L Lesiit(Assist Director, Financial Markets Department, CBK)
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Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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From the calculator the interest is being calculated from the market price of the T-bill which is 83.71.. Meaning at this price your investment will be 83,710 and not 100k... Mark 12:29
Deuteronomy 4:16
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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R U related to RAO by any chance 
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Rank: Member Joined: 9/2/2006 Posts: 121
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Amolo,
Treasury bonds are a form of zero coupon bonds i.e. an investor gets the entire interest at the end of the investment period e.g after 364 days.
In your case, had you bid for the 364 treasury bill at 20% and you were successful, the current value of your Kshs. 100,000 (that you will get after 364 days) is Kshs. 83,371.
The difference between the current value and the face value is Kshs. 16,629. Hence, Kshs. 16,629 divided by the current value of Kshs. 83,371 gives you the 20% that you bid at.
CBK, will not only request you to pay up Kshs. 83,371 but also the 15% with - holding tax on your interest which is Kshs. 2,494.35. That explains the offer amount of Kshs. 85,865.35 as per your link.
Your net interest will therefore be Kshs. Kshs. 14,134.65 which is roughly 17% of the current value.
The offer amount plus the net interest is equal to the face value of the treasury bill
Hope this helps.
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Rank: Member Joined: 1/29/2007 Posts: 70
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Thanks, guru267 and Scooby. Clarification clear and issue closed.
As for Monomotapa please stop seeing everybody as either a relative of ROA or Ruto or Kenyatta. Some people are simply Kenyans, period. Not Kikuyus or Luos or Kambas or Kalenjins, just simple Kenyans.
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Rank: Elder Joined: 9/23/2010 Posts: 2,218 Location: Sundowner,Amboseli
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amolo wrote:It would appear the CBK does not pay the interest rates they claim to pay for T Bills and Bonds. As an example if you invest 100K on 364 days at 20% pa after 15% w/h tax you will get an interest of Ksh 14,134.65 Please use this CBK link to confirm my figures: http://www.centralbank.g...uryBillsCalculator.aspx
Accordintg to my calculations the interst should be KSH 16,953.424 after 15% w/h Tax(allowing for the 364 days instead of 365 in a year) Someone enlighten me please, better Mark L Lesiit(Assist Director, Financial Markets Department, CBK) @Amolo, interest is calculated on what you pay, your actual investment, and not what you receive, in this case 100K. Regards @SufficientlyP
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Rank: Member Joined: 1/1/2010 Posts: 511 Location: kandara, Murang'a
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amolo wrote:Thanks, guru267 and Scooby. Clarification clear and issue closed.
As for Monomotapa please stop seeing everybody as either a relative of ROA or Ruto or Kenyatta. Some people are simply Kenyans, period. Not Kikuyus or Luos or Kambas or Kalenjins, just simple Kenyans. Amolo I think you missed the smiley #lightmoment Foresight..
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Rank: Member Joined: 12/21/2009 Posts: 602
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Not too shabby given the crappy bourse...  Value Dated: 3rd August, 2015 This week the Central Bank of Kenya offered 91-day Treasury Bills for a total of Kshs.3 Billion. The total number of bids received was 255 amounting to Kshs.1.36 Billion, representing a subscription of 45.47%. Total bids accepted amounted to Kshs. 871.2 Million.The market weighted average rate was 13.974 %, and the weighted average of accepted bids which will be applied for non-competitive bids was 11.539% up from 11.486% in the previous auction. The other auction statistics are summarised in the table below.
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Rank: Elder Joined: 3/2/2009 Posts: 26,325 Location: Masada
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Dahatre wrote:Not too shabby given the crappy bourse... Value Dated: 3rd August, 2015 This week the Central Bank of Kenya offered 91-day Treasury Bills for a total of Kshs.3 Billion. The total number of bids received was 255 amounting to Kshs.1.36 Billion, representing a subscription of 45.47%. Total bids accepted amounted to Kshs. 871.2 Million.The market weighted average rate was 13.974 %, and the weighted average of accepted bids which will be applied for non-competitive bids was 11.539% up from 11.486% in the previous auction. The other auction statistics are summarised in the table below. 18% today. Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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Rank: Member Joined: 5/28/2010 Posts: 151
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..am out of the country and my account with CBK is frozen. Is there a way to re-activate it while am outside the country? want to invest in TB. Ni Uhuru wa Mbesha...Niguo kana tiguo?
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Rank: Elder Joined: 3/2/2009 Posts: 26,325 Location: Masada
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kyukkamba wrote:..am out of the country and my account with CBK is frozen. Is there a way to re-activate it while am outside the country? want to invest in TB.
How did you know your account is frozen while mayuu? Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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Rank: Member Joined: 5/28/2010 Posts: 151
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Impunity wrote:kyukkamba wrote:..am out of the country and my account with CBK is frozen. Is there a way to re-activate it while am outside the country? want to invest in TB.
How did you know your account is frozen while mayuu? ...I sent an application for a fresh request and got a reply that the account is frozen...CBK sent me a CBK Site link on how to re-activate. but condition I must be there... was just thinking if it's possible to do it from abroad. Ni Uhuru wa Mbesha...Niguo kana tiguo?
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Rank: Member Joined: 3/26/2012 Posts: 280
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kyukkamba wrote:..am out of the country and my account with CBK is frozen. Is there a way to re-activate it while am outside the country? want to invest in TB.
Advise name of your estate and house number I go check if your households are also intact now that you are out of the country. DOH
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Rank: Member Joined: 3/30/2010 Posts: 176
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For someone who is interested in bidding for TBills, how does one bid, through a stock broker or directly with the CBK?
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Rank: Elder Joined: 3/2/2009 Posts: 26,325 Location: Masada
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Dia wrote:For someone who is interested in bidding for TBills, how does one bid, through a stock broker or directly with the CBK? Directly at CBK or their appointed agents. Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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Rank: Elder Joined: 3/2/2009 Posts: 26,325 Location: Masada
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kyukkamba wrote:Impunity wrote:kyukkamba wrote:..am out of the country and my account with CBK is frozen. Is there a way to re-activate it while am outside the country? want to invest in TB.
How did you know your account is frozen while mayuu? ...I sent an application for a fresh request and got a reply that the account is frozen...CBK sent me a CBK Site link on how to re-activate. but condition I must be there... was just thinking if it's possible to do it from abroad. Well, this is gaamnent you are dealing with and red tape might really loooong and red...you may have no any other option but to fly home. Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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Impunity wrote:kyukkamba wrote:Impunity wrote:kyukkamba wrote:..am out of the country and my account with CBK is frozen. Is there a way to re-activate it while am outside the country? want to invest in TB.
How did you know your account is frozen while mayuu? ...I sent an application for a fresh request and got a reply that the account is frozen...CBK sent me a CBK Site link on how to re-activate. but condition I must be there... was just thinking if it's possible to do it from abroad. Well, this is gaamnent you are dealing with and red tape might really loooong and red...you may have no any other option but to fly home. I find that system rather hard to work with...especially the part that a mandate card should be returned physically by the applicant so guys in the diaspora cant open an account... possunt quia posse videntur
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Rank: Elder Joined: 12/25/2014 Posts: 2,300 Location: kenya
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maka wrote:Impunity wrote:kyukkamba wrote:Impunity wrote:kyukkamba wrote:..am out of the country and my account with CBK is frozen. Is there a way to re-activate it while am outside the country? want to invest in TB.
How did you know your account is frozen while mayuu? ...I sent an application for a fresh request and got a reply that the account is frozen...CBK sent me a CBK Site link on how to re-activate. but condition I must be there... was just thinking if it's possible to do it from abroad. Well, this is gaamnent you are dealing with and red tape might really loooong and red...you may have no any other option but to fly home. I find that system rather hard to work with...especially the part that a mandate card should be returned physically by the applicant so guys in the diaspora cant open an account... Seems like you guys are threats to them . It's a dilemma coz if you use proxies like brothers and sisters,then chances are that utagongwa. It's between rock and soft ground.
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Rank: Elder Joined: 3/2/2009 Posts: 26,325 Location: Masada
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enyands wrote:maka wrote:Impunity wrote:kyukkamba wrote:Impunity wrote:kyukkamba wrote:..am out of the country and my account with CBK is frozen. Is there a way to re-activate it while am outside the country? want to invest in TB.
How did you know your account is frozen while mayuu? ...I sent an application for a fresh request and got a reply that the account is frozen...CBK sent me a CBK Site link on how to re-activate. but condition I must be there... was just thinking if it's possible to do it from abroad. Well, this is gaamnent you are dealing with and red tape might really loooong and red...you may have no any other option but to fly home. I find that system rather hard to work with...especially the part that a mandate card should be returned physically by the applicant so guys in the diaspora cant open an account... Seems like you guys are threats to them . It's a dilemma coz if you use proxies like brothers and sisters,then chances are that utagongwa. It's between rock and soft ground. If you use those cousins and siz sijui bros, then count that money as LOST. There is no way you will tell them you cant pay their college fee whic is only KEs. 100K while you have Kes. 10M lying pretty in CBK accounts. Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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Rank: Member Joined: 12/24/2008 Posts: 112
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@ cucumber...
Do you have an active account with a local commercial bank?
Speak to them about investing in T/bills on your behalf.
They charge a transaction fee of 0.15% of the face value of the T/bill or bond that they purchase on your behalf.
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