Regulatory Alerts2016-07-13
Banking Circular No 4 of 2011 - Revision of the Cash Reserve Requirement and the Central Bank Rate
The Monetary Policy Committee raised Kenya's Cash Reserve Requirement (CRR) from 4.5% to 4.75% and increased the Central Bank Rate (CBR) from 6.00% to 6.25%. Additionally, the tenor for late repurchase agreements (repos) has been shortened to four days at 100 basis points below the average early repo rate. These changes are immediate effects.
BANKI KUU YA KENYA BANK OF KENYA Haile Selassie Avenue P. O. Box 60000 - 00200 Nairobi, Kenya Telephone: 2860000, Fax: 340192 2nd June 2011 BANKING CIRCULAR NO. 4 OF 2011 TO: ALL CHIEF EXECUTIVES OF COMMERCIAL BANKS REVISION OF THE CASH RESERVE REQUIREMENT (CRR) & THE CENTRAL BANK RATE (CBR) The Monetary Policy Committee (MPC) at its meeting on 31* May 2011 reviewed and raised the Cash Reserve Requirement (CRR) by 25 basis points from 4.5% to 4.75% and CBR upwards from 6.00% to 6.25%.
In addition, the tenor for late repurchase agreement (repo) which has hitherto been fixed at seven (7) days will now be available for four (4) days at 100 basis points below the average for the early repo rate.
All the above changes take effect immediately.
JACKSON M. KITI DIRECTOR, BANKING SERVICES, NATIONAL PAYMENT SYSTEMS & RISK MANAGEMENT DEPARTMENT