Kenya: Rising Treasury Bill Yields Won’t Derail Rate Cuts, CBK Governor Thugge Says

Nairobi — Central Bank of Kenya (CBK) Governor Kamau Thugge says rising Treasury bill yields will not undermine the transmission of monetary policy to commercial bank lending rates.

Thugge said the alignment of the Kenya Shilling Overnight Interbank Average Rate (KESONIA) with the Central Bank Rate (CBR) has strengthened the link between the policy rate and commercial bank pricing.

The CBR currently stands at 8.75 percent, while the 91-day Treasury bill yield was 8.782 percent on August 10….