@Liv, I could not agree with you more on the issue of the CBK move being a good one.Only thing is that it cannot stop the global recession and hanging cloud of Waki and the possible referundum. The noise level of the Waki report will continue to plague us for the medium term while I think that at every opportunity that the market will go up say 10% the supply will flow in and push the prices back down. Inflation right now is also an issue. That is what happened to the short lived rally about a month ago. Earliest we can see any significant rise in my view will be March/April but definately not to the 4000 levels until say 12-18 months from now. We might have to contend with 6% dividend yields for now at best. All that matters is character

It is not for the CBK to demand explanations from banks. Don't bark,bite. Otherwise they join the Energy Regulatory Commissions of this world.

hmmm...lets see.... cbk cuts rates releases 10bn...same time MOF says government will borrow 109bn!...so cutting crr is a very clever way of doing a silly thing...depress short term rates so that banks are forced to lend to the government at higher rates...its then assumed that the government will use this money to boost the economy(keynesian thinking)..only problem is: 1.cbk/GOK crowds out private sector as banks shift their lending from private sector to public sector(purchase of t-bills/bonds) 2. kenyensian thinkin fails to work as our beloved government usualy spends bulk of its receipts on recurrent than developmental expenditure... What CBK/GOK should do inorder to spur growth is cut spending,totally do away with CRR and cut personal and corporate income tax....

@Kizee brilliant comments. CBK is releasing liquidity to the market to reduce the cost of funds for the Government while it is directly urging banks to extend this to the private sector thro reduction in lending rates. But the banks have increased appetite for govt securities which provide stable returns with less risk. Currently,there is a shift by commercial banks from private sector lending to public lending....this itself is against V2030 roadmap,which sees private sector as the main source of growth. On the same note,the banks are sitting on idle money,lending to private has slowed down. Cost of funds for the private sector are up,inflation is high (although caused by supply side effects); Is CBK attaining its core mandates?

Allow me to offer my pedestrian views The 10bn so released may not translate to increased retail lending levels witnessed previously since most SMes and salaried workers are already servicing loans and futher to that the bad loan provisioning has gone up for most banks Biggest beneficiary will be corporate bonds and 364 day tbill Me first,U next