Regulatory Alerts2015-07-24
Banking Circular No 7 of 2015 - Change of the Kenya Banks\' Reference Rate (KBRR)
The Kenyan central bank has raised its Central Bank Rate to 11.50% and introduced a 3-day repo effective immediately. Rates for repo bids will be at 11.50%, with successful Term Auction Deposits (TAD) bids attracting an interest rate of 14.00%. Borrowing from the Central Bank's Overnight Window now has a 17.50% interest rate. This announcement comes after decisions made by the Monetary Policy Committee, with this repo available only on Monday to Thursday every week.
KENYA July 9, 2015
P. O. Box 60000 - 00200 Telephone: 2860000, Fax BANKING CIRCULAR NO. 8 OF 2015 TO: ALL CHIEF EXECUTIVES OF COMMERCIAL BANKS BANK RATE (CBR) AND REVIEW OF THE CENTRAL INTRODUCTION OF A 3-DAY REPO This is to advise you that following the Monetary Policy Committee decisions to raise the CBR to 11.50 percent and introduce a 3-day Repo that will only be available as from Monday to Thursday every week. The rates hereunder shall take immediate effect.
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The highest interest rate that the Central Bank of Kenya will accept on Repo bids is 11.50 percent.
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The lowest interest rate that the Central Bank of Kenya will accept on Reverse Repo bids is 11.50 percent.
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Successful Term Auction Deposits (TAD) bids will attract an interest rate of 14.00 percent.
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Borrowing from the Central Bank of Kenya Overnight Window will attract an interest rate of 17.50 percent.
NYAOMA GERA DIRECTOR, FINANCIAL MARKETS