NAIROBI, Sept. 9 (Xinhua) -- The rate at which Kenyan banks borrow money from each other hit a five-month high on Monday as liquidity tightened in east African nation's money market.
The rate stood at 6.11 percent on Monday, the Central Bank said, a rise from 5.87 percent at the end of Friday last week.
The last time the rate stood above 6 percent was on May 10, where it hit 6.2 percent before it started to decline to an eight-year low of 1.9 percent on July 18.
It has, however, been on a steady climb since August as liquidity tightens in the money markets, according to analysts.
"The average interbank rate rose from the previous week, pointing to declined liquidity in the money market," said Cytonn, a Nairobi-based investment firm, in its weekly report on Monday.
The rise in interbank rate has seen the volume of cash traded between banks decline, with the value traded last week standing at 8.2 billion shillings (80.4 billion U.S. dollars) from 110 billion dollars the previous week, said the Central Bank.