The Central Bank of Kenya (CBK) had mopped up a daily average of Sh62.85 billion until Monday since the year began amid excess liquidity from banks which are grappling with rising deposits from customers in an environment of slow growth in lending activities.
The liquid money market has also seen higher volumes offered in recent Treasury bills auctions—a segment dominated by banks— and an increase in the lenders’ excess cash holding above the 3.5 percent cash reserve ratio to Sh57 billion.
