2023-08-29

Banking Circular No 6 of 2023 - Changes to Haircuts Applicable to Government Securities used as Collateral for Vertical Repos, CBK Discount (Overnight) Window and Intra-Day Liquidity Facility

The Financial Markets Department has revised haircut rates for government securities used as collateral for Vertical Repos, CBK Discount (Overnight) Window and Intra-day Liquidity Facility. Effective immediately, the new applicable haircuts are: 2% for all collateral, 10% for Treasury Bills/Bonds less than one year, 5% for Treasury Bonds between 1 to 10 years, and 10% for those over 10 years. This update follows the launch of DhowCSD on July 31, 2023, which aims at improving operations involving government securities.

Kenya

Central Bank of Kenya

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