Kenya's interbank rate rose 1.4 percent this week as commercial banks aggressively borrowed from each other.

The rate jumped from 4.2 percent last week to 5.6 percent this week, Central Bank of Kenya (CBK) said in its weekly brief received Saturday.

"The average number of interbank deals increased to 41 from 33 deals in the previous week, while the average interbank volumes traded increased to 28.5 billion shillings (279 million U.S. dollars) from 216 million dollars," said the apex bank.

However, even as banks' intensified borrowing, during the week liquidity conditions in the money market remained high supported by net redemptions of government securities, CBK said.

"Commercial banks' excess reserves recorded a shortfall of 125 million dollars in relation to the 5.25 percent cash reserves requirements," added the bank.