Moderating the Interest Rates Spread

Moderating the Interest Rates Spread    |   File Size: 151.99 kB Downloads: 3736   |   Post Date: 12 July 2012

Despite the liberalization of the financial sector Kenya has consistently maintained a high interest spread. More specifically, the interest rate applicable to the Treasury Bill, which is the government’s risk free security has been unacceptably high and this has the primary effect of diverting the financial institutions such as banks into the heavy purchase of Treasury Bills

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