2023-08-22

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

The Central Bank of Kenya's Monetary Policy Committee has approved changes to the CBK Discount (Overnight) Window Facility. Effective immediately, the applicable interest rate on the facility has been reduced by 200 basis points, now at 400 basis points above the Central Bank Rate. Advances will continue to be secured with Government of Kenya securities, subject to a haircut of 10% for Treasury bills and 20% for Treasury bonds. The existing terms for access to the Intra-day Liquidity Facility remain unchanged. These changes align with modernization of monetary policy framework and operations outlined in the White Paper.

Kenya

Central Bank of Kenya

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