How bond collateral system will work

The Central Bank of Kenya. PHOTO | DENNIS ONSONGO | NMG

In September 2008, the Central Bank of Kenya (CBK) introduced a system where banks could borrow from one another on an emergency basis and address liquidity imbalances in the sector, backed by government securities as collateral.

This kind of interbank lending, technically known as horizontal repurchase (repo) transactions, was also meant to ease pressure on the regulator to keep distressed lenders supplied with liquidity.

PAYE Tax Calculator

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