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Banks' bonds binge casts long shadow on State cheap credit pledge

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The government borrows from the domestic debt market mainly through the weekly Treasury-bill and Treasury bond auctions. [iStockphoto]

Commercial banks continue to pile up record amounts of debt in risk-free bonds at the expense of lending to the private sector.

This works against the new Kenya Kwanza government's bid to free up credit to the private sector and individual borrowers.

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