{
  "id": 2722986,
  "title": "CBK reports Ksh45.9B excess liquidity in banking sector",
  "url": "https://urgent.news/2026/08/23/cbk-reports-ksh45-9b-excess-liquidity-in-banking-sector",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-23T04:47:19.000Z",
  "source": {
    "name": "People Daily Kenya",
    "slug": "people-daily-kenya",
    "url": "https://peopledaily.digital/business/cbk-reports-ksh45-9b-excess-liquidity-in-banking-sector"
  },
  "original_language": "en",
  "account": "The Central Bank of Kenya (CBK) reported Ksh45.9 billion in excess liquidity within the banking sector during the week ending August 20, 2026, according to a weekly bulletin released on Friday, August 21, 2026. In this bulletin, the regulator indicated that commercial banks held an average of Ksh45.9 billion above the statutory Cash Reserve Ratio (CRR) of 3.25 percent. The latest figures demonstrate continued liquidity in the banking system, despite a decrease in activity within the interbank market. The Kenya Shilling Overnight Interbank Average Rate (KESONIA) remained unchanged at 8.75 percent, mirroring the rate recorded on August 13, 2026. This steady rate signals the average interest rate at which banks lend to one another overnight, serving as a vital indicator of short-term liquidity conditions in the sector. Additionally, CBK observed a decline in interbank transactions, with the average number of transactions dropping to 23 from 25 in the preceding week. The average value traded also decreased to Ksh17.6 billion from Ksh18.8 billion during the same period. This reduction in activity follows a period of increased interbank trading, where the average value traded rose to Ksh18.8 billion from Ksh13.4 billion during the week ending August 13, 2026. The CBK attributes this shift in activity to commercial banks managing their short-term liquidity positions. Despite the decline in interbank trading volumes, the Ksh45.9 billion in excess reserves held by commercial banks indicates a robust liquidity buffer. The KCB's ongoing open market operations aim to maintain stability in the financial system, as evidenced by the KESONIA rate remaining steady.",
  "summary": "The banking sector remained liquid during the week ending August 20, 2026, with commercial banks holding an average of Ksh45.9 billion above the statutory Cash Reserve Ratio (CRR) requirement, according to the Central Bank of Kenya (CBK). In a weekly bulletin shared on Friday, August 21, 2026, the regulator said money market conditions remained liquid […]",
  "key_points": [
    "CBK reports Ksh45.9 billion excess liquidity in banking sector",
    "Commercial banks held Ksh45.9 billion above statutory Cash Reserve Ratio",
    "Interbank transactions and values decreased in August"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}