Small lenders feel pinch as interbank rate rises to 5.2pc

Central Bank of Kenya. FILE PHOTO | NMG

The overnight lending rate between banks has gone up in the past week-and-a-half with smaller peers forced to pay higher rates to access cash in an increasingly tight market.

Central Bank of Kenya’s (CBK) latest data shows that the rate had climbed to 5.17 per cent by yesterday—having gone as high as 5.7 per cent last Friday—from 4.3 per cent at the beginning of last week.

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