CBK: Money market remains liquid as excess bank reserves hit Ksh25.5B
The money market remained liquid during the week ending August 27, 2026, with commercial banks holding an average of Ksh25.5 billion in excess reserves above the statutory Cash Reserve Ratio (CRR) requirement. In a weekly report shared on its X account on Friday, August 28, 2026, the Central Bank of Kenya (CBK) said open market […]
During the week ending August 27, 2026, the money market remained liquid, as commercial banks held an average of Ksh25.5 billion in excess reserves above the mandatory Cash Reserve Ratio (CRR) requirement, according to the Central Bank of Kenya (CBK). The regulator reported this in a weekly update shared on its X account on August 28, 2026.
The CBK continued to manage liquidity conditions in the financial system through open market operations. The Kenya Shilling Overnight Interbank Average (KESONIA) remained steady at 8.75% during the week, indicating the average cost of short-term lending among banks. This figure remained unchanged from the previous week. Prior to this, the CBK had reported that banks had Ksh45.9 billion in excess reserves during the week ending August 20, 2026, with the KESONIA rate remaining at 8.75% during that period.
Interbank market activity increased during the latest week, with the average number of transactions rising to 26 from 23 in the previous week, and the average value traded increasing to Ksh19.1 billion from Ksh17.6 billion. The CBK noted that the increase in interbank transactions and value traded suggests heightened activity among commercial banks as they managed their short-term liquidity positions.
The regulator emphasized that open market operations remained active, contributing to the stability of the money market.
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.
