Central Bank of Kenya mops up cash to steady liquidity

Central Bank of Kenya head office (PHOTO: FILE)

The Central Bank of Kenya (CBK) last week plunged into the market to mop up excess liquidity by offering lenders attractive rates to park money in its reserves.

The apex bank did not, however, indicate the amount it was mopping up from the market. Reserve repurchase (repo) - the rate at which lenders park surplus funds with reserve banks was raised to eight per cent on January 28 as CBK sort to stabilise prices.