What CBK’s Rate Cut Means for Your Money Market Fund Returns

CBK has cut the lending rate by 25 basis points...

✨ Key Highlights

Kenyans investing in Money Market Funds (MMFs) face challenges after the Central Bank of Kenya (CBK) cut the base lending rate by 25 basis points to 9.75%, marking the sixth consecutive reduction since August. This trend is likely to decrease yields from MMFs.

The average effective annual yield on MMFs has been between 9% and 11%, but is expected to decline.
CBK Governor Kamau Thugge indicated that the interest rate cut aims to stimulate lending and economic activity.
The top five MMF schemes manage Kshs. 318.9 billion of the country's CIS market.

Continue Reading

Read the complete article from Kenyans

📰 Read Full Article

Related News

1d ago

CBK plans to slash mobile money fees by more than half

The Central Bank of Kenya (CBK) is reportedly planning to significantly reduce mobile money transaction fees, potentially by more than half.

The Standard Business

📰 Read Full Story

Video

Investors favor 25-year bond over 30-year in CBK December auction

NTV Kenya (Youtube)

3d ago

Why banks are eying more auctions on loan defaulters

This article is a placeholder with contact information for The Standard Group Plc, a Kenyan multi-media organization. It does not contain news content about banks and loan defaulters.

The Standard Business

📰 Read Full Story

3d ago

Banks eye more auctions as defaults rise in construction loans

Kenyan banks are set to increase property auctions as a surge in loan defaults, particularly in the construction sector, impacts their portfolios. This move is a direct response to growing financial strain experienced by borrowers.

The Standard Business

📰 Read Full Story