Kenya’s money market remains liquid as bank excess reserves hit Ksh17.7B
Kenya’s money market remained liquid during the week ending August 6, 2026, with commercial banks recording higher excess reserves and increased activity in the interbank market, the Central Bank of Kenya (CBK) has said. In its weekly bulletin dated Friday, August 7, 2026, CBK said commercial banks’ excess reserves averaged Ksh17.7 billion above the 3.25 […]
During the week ending August 6, 2026, Kenya's money market remained liquid, according to the Central Bank of Kenya (CBK). Commercial banks recorded excess reserves totaling Ksh17.7 billion, surpassing the 3.25% Cash Reserve Ratio (CRR) requirement. The CBK's weekly bulletin revealed that open market operations were active during this period. The Ksh17.7 billion excess reserves marked a rise from the Ksh13.5 billion observed in the previous week, underscoring ongoing liquidity in the banking sector.
The Kenya Shilling Overnight Interbank Average Rate (KESONIA) remained steady at 8.75% on August 6, 2026. This rate, which reflects banks' overnight lending to each other, remained unchanged compared to July 30, 2026. The CBK noted that KESONIA is a crucial indicator of short-term liquidity conditions in the financial system.
Interbank market activity also saw an uptick, with the average number of transactions increasing to 21 from 17 in the prior week. The average value traded rose to Ksh13.4 billion from Ksh12 billion. These figures suggest heightened activity among commercial banks as they fine-tuned their short-term liquidity positions.
The latest data followed a similar trend from the previous week, where the CBK reported Ksh13.5 billion in excess reserves and 17 average interbank transactions. Despite active liquidity management through open market operations, commercial banks consistently maintained reserves exceeding the statutory requirement, while interbank trading persisted. With excess reserves reaching Ksh17.7 billion and KESONIA staying at 8.75%, the money market remained broadly stable throughout the week.
Written by urgent.news from People Daily Kenya's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
