Banking Circular No. 1 of 2026 - Changes to CBK Discount (Overnight) Window Facility

BANKI
KUU YA
KENYA
CENTRAL
BANK OF
KENYA
Haile Selassie Avenue
P.O. Box 60000 - 00200 Nairobi, Kenya
Telephone: 2860000, Fax: 3340192
February 10, 2026
Banking Circular No. 1 of 2026
TO: ALL CHIEF EXECUTIVES OF COMMERCIAL BANKS AND MICROFINANCE BANKS CHANGES TO THE CBK DISCOUNT (OVERNIGHT) WINDOW FACILITY The Monetary Policy Committee (MPC) of the Central Bank of Kenya (CBK) at its meeting held on February 10, 2026, reviewed and approved changes to the CBK Discount (Overnight) Window Facility. These changes are designed to enhance monetary policy transmission and augment reforms announced on August 9, 2023, on the Monetary Policy Implementation Framework. The CBK therefore makes the following changes.

1. The applicable interest rate on the facility has been reviewed from 75 basis points above the
   CBR to 50 basis points above the CBR.
2. The advances will continue to be secured by Government of Kenya securities subject to haircut
   as outlined in Banking Circular No 6 of 2023 dated August 29, 2023.
3. The existing terms for access to the Intra-day Liquidity Facility (ILF) remain unchanged.
   This Circular supersedes all previous circulars issued on the above subject matter and the changes take effect immediately. MICHAEL EGANZA DIRECTOR, BANKING AND PAYMENT SERVICES DEPARTMENT cc: Chief Executive Officer - Kenya Bankers Association C2: CBK - Official