Why Treasury cleared outstanding Central Bank overdrafts

The National Treasury building.

Photo credit: File| Nation Media Group

The National Treasury paid off the outstanding overdraft balance at the Central Bank of Kenya last week to free up borrowing space for huge payments to bondholders this week, a top official said.

The CBK disclosed in the latest weekly bulletin that the Treasury cleared Sh63.35 billion in emergency loans last week, pushing the outstanding debt via a window to nearly zero, a rarity last witnessed more than four years ago in July 2020.

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