Kenya central bank to inject 30 billion shillings into the market

NAIROBI Tue Aug 26, 2014 5:06am EDT

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NAIROBI Aug 26 (Reuters) - Kenya's central bank sought to inject 30 billion shillings (338.41 million US dollar) into the market on Tuesday after a liquidity crunch sent overnight lending rates higher.

Overnight borrowing rates on the interbank market hit a high of 15.50 percent on Monday, above the central bank's discount window of 14.50 percent.

The weighted average interbank lending rate rose to 13.8391 percent from 13.4508 on Friday. It was about 7.5 percent in mid-July. The bank said it was seeking to inject the money into the markets through a reverse repurchase agreement (reverse repo). (1 US dollar = 88.6500 Kenyan shilling) (Reporting by Drazen Jorgic; Editing by Duncan Miriri)

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