Money Market Statistics
Interbank lending took a step back this week, undoing last week’s gains as traded volumes shrank by 26.4% to KES 14.46bn from KES 19.65bn. Transaction counts followed suit, sliding 29.3%, alongside a 29.3% dip in transaction count. As liquidity tightened, banks charged each other a bit more, nudging the average lending rate up by 3.27bps to 10.69% from 10.66% the previous week.
The table below summarizes the market liquidity indicators:
In the month of February, interbank volumes traded declined by 38.7% and 41.3% to KES 15.94bn, from KES 26.0bn and KES 27.14bn in February 2024 and January 2025, respectively. See below a visual chart of the interbank market trends;
The weighted average interbank rate has closely tracked the Central Bank Rate, underscoring the stability and effectiveness of the monetary policy framework. See the chart below;
