Commercial banks have raised the cash holdings on their books to record levels amid slow growth in lending to the private sector, in a tough economy where businesses and individuals have struggled to service loans.
Central Bank of Kenya (CBK) data shows that the average liquidity ratio for commercial banks stood at 59.8 percent at the end of August—up from 54.3 percent a year earlier—, the highest recorded and against a regulatory requirement of 20 percent.
