Shilling may weaken as business resumes after holiday

Kenya shilling coins and notes are pictured inside a cashier's booth at a forex exchange bureau in Kenya's capital Nairobi. [Photo: Reuters]

NAIROBI- The Kenyan shilling was stable on Wednesday but players expected some weakening amid increased demand for hard currency from oil and goods importers as business activity resumed after the holiday, traders said.

At 0829 GMT, commercial banks quoted the shilling at 102.00/20 per dollar, the same as Monday’s close.

In December, the Kenyan shilling stabled against the dollar supported by tight local currency liquidity in the money market and inflows from diaspora remittances.

Commercial banks quoted the shilling at 102.55/75 per dollar.

“Markets will be liquidity guided with a bias for further tightening as we approach a new credit cycle ... There is a lot of demand for Kenyan shilling,” said a senior trader from one commercial bank.