Nairobi, Aug. 29 -- The National Treasury has cashed 41 percent of its annual domestic borrowing target just two months into the fiscal year, signalling a rush to capitalise on a highly liquid market to secure early funding to plug its budget deficit.

New disclosures by the Central Bank of Kenya (CBK) show that the net borrowing in July and August stood at Sh406 billion, against the full fiscal year target of Sh987.4 billion. This means that the Treasury has already tapped 41.11 percent of its annual domestic target with 10 months still to go.

The State mainly borrows from the domestic market via Treasury bonds, with a smaller share coming through Treasury bills and overdrafts from commercial banks and the CBK.

August's infrastructure ...