MONEY MARKET STATISTICS
This week, the Central Bank of Kenya began publishing the now formal risk-free rate — the Kenya Shilling Overnight Interbank Average (KESONIA). The average unsecured interbank lending rate eased to 9.52% from 9.56% the previous week, even as the apex bank sustained its liquidity mop-ups. Interbank activity slumped just 22% of the previous levels, averaging KES 7.80bn against KES 35.91bn a week earlier. The plunge was mirrored in lower transaction counts, with a handful of players resorting to the discount window, as shown below:
Key to note, the Central Bank’s open market operations have continued to subdue interbank activity, with some banks relying less on the interbank market and instead turning to the CBK. See the chart below;
Interbank rates continued to trade closely in line with the Central Bank Rate (CBR), as illustrated below:
