The rate of interest charged on short-term loans made between banks has slumped to a 20-month low, mirroring the impact of Central Bank of Kenya (CBK) actions to bring down credit costs and improve liquidity in the money markets.
Records showed that the interbank lending rate fell to 9.986 percent as of last Frida—the lowest level since August 15, 2023— in a week that saw the CBK trim its benchmark lending rate and reduce the interest rate range for cross-bank lending.
