NAIROBI (Xinhua) --
The Kenya shilling weakened on Wednesday slightly
pulled down by sustained U.S. dollar demand from retail
The shilling closed
Wednesday at an average of 102.9, a decline from the previous
session as a tough political climate in the East African nation
too weighed down on the currency.
The Central Bank of
Kenya (CBK) quoted the currency at 102.89 after losing from
102.70 on Tuesday, with the shilling gravitating towards the 103
Commercial banks, on
the other hand, put the value of the shilling to the dollar at
between 102.80 and 103.0, as traders cited an increase in dollar
demand from oil importers.
The demand had
outweighed inflows from various sectors including horticulture,
thus putting pressure on the shilling which is also being
burdened by political uncertainty in the East African nation.
Against the British
pound, the shilling also weakened to trade at 136.40 on
Wednesday from the previous day’s 135.5.
However, even as the
shilling faces pressure, Kenya has strong forex reserves
position to cushion the local unit. Central Bank data indicated
Wednesday that the reserves stand at 7.5 billion dollars or an
equivalent to five months of import cover.
While they have been
on the decline from 8.3 billion dollars where they peaked in
April, the decline is not worrying level, according to analysts.
Kenya shilling sustains positive growth
amid tough political climate
Kenya shilling strengthens
despite intense political bickering
NAIROBI, (Xinhua) --
The Kenya shilling strengthened against the U.S.
dollar on Monday as the market weathered political bickering
over fresh presidential polls scheduled for Oct. 17.
The shilling traded
against the dollar at a high of 102.8, a gain from 103.00 at the
end of last week.
The Central Bank of
Kenya (CBK) on Monday placed the value of the local unit at
102.89, which was a rise of 0.34 percent from the over 103.00
On the other hand,
commercial banks quoted the value of the shilling against the
dollar at between 102.75 and 102.85 as traders noted the
currency would continue to hold steady due to rise in dollar
On Monday, however,
as the shilling steadied against the dollar, it weakened against
the British pound by 0.85 percent to close at 135.85.
The Kenya shilling
appreciated against the dollar by 0.1 percent last week to close
at 103 from 103.1 the previous week, primarily due to dollar
inflows from foreign investors to the local equity and debt
“In our view, the
shilling should remain relatively stable to the dollar in the
short term, supported by CBK’s activity as they have sufficient
forex reserves, currently at 7.5 billion dollars (equivalent to
5.0 months of import cover), but we have seen the reserves
decline significantly from 8.3 billion dollars at the peak in
April this year, but not to a worrying level, as import cover
currently stands at five months,” Cytonn, a Nairobi-based
investment firm, said in a report Monday.