Kenya shilling weakens, corporate dollar demand emerges

Kenya’s shilling weakened modestly on Monday as demand for dollars emerged from oil firms and manufacturers.

Shares also slipped. By the official close at 1330 GMT, commercial banks quoted the shilling at 102.35/45 to the dollar, compared with Friday’s close of 102.20/30.

Manufacturing and oil firms were seeking dollars after many had stayed out of the market during the end-of-year break, a trader said. “People are cautious because last time we touched these levels we saw the central bank intervening,” he added.

Towards the end of last year, the central bank had sold dollars when the shilling reached the 102.50 level.

The central bank says it does not target a specific exchange rate. The benchmark NSE 20 share index slipped 10.50 points to close at 3929.92 points.