Regulatory Alerts2026-02-10
Banking Circular No. 1 of 2026 - Changes to CBK Discount (Overnight) Window Facility
The Central Bank of Kenya has lowered the applicable interest rate for its Discount (Overnight) Window Facility from 75 basis points above the Central Bank Rate (CBR) to 50 basis points above the CBR. This change, effective immediately, aims to strengthen monetary policy transmission and builds upon earlier reforms. While collateral requirements for advances remain Government of Kenya securities subject to haircut, the existing terms for the Intra-day Liquidity Facility are unchanged, and this circular supersedes all prior related communications.
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