Commercial banks have raised their reliance on the Central Bank of Kenya (CBK) for liquidity support this year as the sector pays the price for reduced government payments and high interest rates that have made it expensive to mobilise deposits from customers.
Lenders have cumulatively tapped Sh4 trillion from the CBK through the reverse repurchase agreements (repo) since the beginning of this year, and another Sh81 billion through the CBK’s daily lending facility, which is known as a discount window.
