2023-08-10

Banking Circular No. 5 of 2023 - Changes to the CBK Discount (Overnight) Window Facility

The Monetary Policy Committee (MPC) of the Central Bank of Kenya (CBK) has approved changes to the CBK Discount (Overnight) Window Facility. These changes include reducing the applicable interest rate on the facility from 600 basis points above the CBR to 400 basis points above the CBR and maintaining Government of Kenya securities as collateral, with a haircut of 10 per cent for Treasury bills and 20 per cent for Treasury bonds. These changes are in line with the White Paper on Modernization of the Monetary Policy Framework and Operations and become effective immediately.

Kenya

Central Bank of Kenya

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