Commercial banks have deepened their dependence on the Central Bank of Kenya (CBK) for liquidity support, pushing their cumulative drawdowns through reverse repurchase agreements (repos) this year to Sh5 trillion and signalling skewed cash distribution in the sector.
CBK data shows that the lenders have tapped the short-term facility at an average of Sh500 billion per month and are therefore on pace to double the Sh2.93 trillion they borrowed via the window in 2023 before the end of this year.
