Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.


Kenya shilling holds steady vs dollar

06 February 2012, 14:05

Nairobi - Offshore dollar inflows into high yielding government securities are seen boosting the Kenyan shilling in the coming days, traders said, as the currency held steady in lacklustre trade on Monday.    

Demand for government paper across east Africa has jumped due to the high yields offered by authorities trying to quell inflation and support currencies. Commercial banks are also hedging against loan defaults due to the rise in lending rates.
At 0733 GMT, banks quoted the shilling at 83.70/90 against the dollar, barely changed from Friday's close of 83.80/90.
"It's still biased for a stronger shilling going forwards. We're are seeing good inflows from foreign buyers into bonds because of the high yields," said Julius Kiriinya, a trader at African Banking Corporation.     

Traders said they expected the shilling to trade in the 83.00-84.50 range this week.    

The Central Bank of Kenya held its key rate at 18 percent for a second straight month in February, disregarding a marginal fall in inflation over the last two months to 18.31 percent in January.     

"With the overall aggregate demand in the economy being depressed due to the current high cost of accessing credit, the shilling could strengthen further in the days to come as supply overwhelms demand for the greenback," said Bank of Africa in a daily report. 



Read News24’s Comments Policy

Comment on this story
Comments have been closed for this article.

Read more from our Users

Submitted by
Victor Tinto
Leave ODM if you are unhappy, Rai...

Leave ODM if you are not happy, Raila Odinga tells Senator. Read more...

Submitted by
Victor Tinto
Former Assistant Minister joins J...

A former Assistant Minister has quit PNU and joined the Jubilee Party. Read more...

Submitted by
Victor Tinto
DP Ruto intervenes as Kerio Valle...

DP William Ruto will visit Kerio Valley to try solve never-ending clashes between local residents. Read more...

Submitted by
Wilson Ochieng
ODM MP chased down by angry Kibra...

Kibra MP Ken Okoth had a hard time in his constituency after angry youth pelted him with stones. Read more...

Submitted by
Wilson Ochieng
Prepare for DP Ruto fight in 2022...

An MP has warned that the Kalenjin Community will not stand back and watch as DP Ruto is duped ahead of the 2022 polls. Read more...

Submitted by
William Korir
Be careful who you deal with, DP ...

Watch out for your political future, DP William Ruto has been warned. Read more...