Commercial banks leaned on the Central Bank of Kenya (CBK) for record-high liquidity support of nearly Sh100 billion on Monday, signalling a short-term cash crunch that is partly linked to the Sh44.15 billion tea bonus payment to farmers.
The CBK, noting that liquidity was skewed in the market, offered to inject Sh50 billion via seven-day reverse repurchase agreements (repos), but banks made bids worth Sh99.87 billion, all of which were accepted by the CBK at an average interest rate of 12.87 percent.
