2016-10-25

Banking Circular No 9 of 2008 - Revision of the rediscount rates methodology for government securities

This Banking Circular No.9 of 2008 addresses the revisions in the Treasury Bill Rediscount Rate methodology. The Central Bank has decided to de-link this rate from the CBR, which is a Monetary Policy signalling instrument, and align it with market value. For the 91-day bill, the new rate will be 3 percentage points above the prevailing average, and for the 182-day bill, the rate will be 3 percentage points above the respective 182-day Treasury Bills' average rate. The changes are immediate, while the rates for Treasury Bonds remain as stated in their respective bond issues' prospectus.

Kenya

Central Bank of Kenya

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