2020-03-27

Banking Circular No. 4 of 2020 - Review of Cash Reserve Ratio

The Kenyan Monetary Policy Committee has reduced the Cash Reserve Ratio (CRR) from 5.25% to 4.25%. This move is expected to release an additional Ksh35.2 billion as liquidity to support banks in addressing distress caused by COVID-19. Commercial banks, mortgage finance companies, and microfinance banks need to submit requests along with supporting documents for accessing this additional liquidity. Monthly updates on the utilization of these funds are also required. The new CRR is effective immediately, and banks must adhere to a daily CRR requirement of 3% and a monthly average CRR of 4.25%.

Kenya

Central Bank of Kenya

Show thumbnail