The Central Bank of Kenya (CBK) will from next month stop paying a commission to stockbrokers, custodian banks and authorised securities dealers who help it sell Treasury bonds, cutting them off from revenue worth hundreds of millions of shillings annually.
The CBK has been paying the placing agents—who act as intermediaries between the central bank and buyers of bonds and Treasury bills— a commission of 0.15 percent of the value of the securities they sell on its behalf, net of five percent withholding tax.
