Nairobi, May 11 -- Commercial banks are set to report improved cash positions following instruction to include regulatory reserves in their reporting figures.

Banks had been accounting for cash set aside to meet regulatory requirements differently, forcing the accounting body to issue guidance in consultations with the Central Bank of Kenya.

Banks are required by CBK to hold a mandatory Cash Reserve Ratio (CRR) which is currently 3.25 percent of their deposits.

The restatement would see banks reporting higher cash positions reflecting more liquidity even though they can't access the funds.

Improved liquidity could be crucial to banks, especially those not meeting the statutory minimum requirement. Besides the CRR, banks are also requi...