The CBK provides liquidity to commercial and microfinance banks as a lender of last resort to ensure the sector’s stability.
The Central Bank of Kenya (CBK) is set to remove limits on emergency loans issued to banks in distress, including extending the duration of medium-term facilities offered under the liquidity support framework.
The proposed amendments to the CBK Act are set to enhance the apex bank’s role in supporting commercial banks in distress for reasons outside of mismanagement.
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