Abstract: Interbank money market plays a major role solving temporary liquidity problems in the financial sector. Because of the importance of interbank this study aims to find out the effects of Basel Liquidity accords on interbank money market lending rates in Kenya. The study investigated particularly the effects of core capital requirement, loan to deposit ratio requirement, reserve requirement and liquidity ratio requirement on interbank lending rate. The study adopted a descriptive survey design. The design is considered suitable as it allows an in-depth study of the challenges effects of Basel liquidity regulations on interbank money market and this data can be collected largely with ease from a variety of people working in commercial Banks. The target population for this study was all commercial banks in Kenya. According to the Central Bank of Kenya (CBK), there are 43 commercial banks, 31 are locally owned and 12 foreign owned.