CBK mops up excess cash as lenders stay cautious about defaulters

The Central Bank of Kenya (CBK) Governor Dr Kamau Thugge during an interview at his office along Haile Selassie Avenue, Nairobi on June 21, 2024.

Photo credit: File | Nation Media Group

The Central Bank of Kenya (CBK) has stepped up its mop-up of excess liquidity from the money market this year, exposing the increased cash reserves held by lenders amid slowed lending to the private sector.

The CBK has cumulatively pulled out Sh1.83 trillion in liquidity through repurchase agreements (repo) since January, reversing the trend seen last year when it injected cash into the market.

PAYE Tax Calculator

Note: The results are not exact but very close to the actual.