Kenya central bank raises discount window rate to 15.68pc

NAIROBI: Kenya's central bank raised on Wednesday its discount window rate to 15.68 percent from 13.87 percent a day earlier, a posting on its website showed, on the back of its revised overnight lending rules last week.

Central Bank of Kenya said on Friday that commercial banks intending to borrow from the overnight window would be charged at a higher rate based on a formula taking into account the central bank rate (CBR), plus the previous day's average interbank rate, minus the central bank's rate of 6.25 percent plus a penalty of three percentage points.

At close of Tuesday trade the weighted average interbank lending rate stood at 12.68 percent, from 10.87 percent on Monday.

Copyright Reuters, 2011