News

Kenya’s shilling was steady and traders said the currency will be boosted by dollar inflows from offshore investors attracted by the high interest rates on the government Treasury bills.
At 10.23 a.m. last Friday, the 9th of October 2015, commercial banks quoted the shilling at 103.05/15 to the dollar, compared to Thursday’s close at 103.00/10.
A senior trader at one commercial bank said: “It’s very stable, though the high government security yields are attracting (dollar) inflows, but demand remains subdued for now”.


The weighted average yield on the 91-day Treasury bills rose to 21.35 per cent last week from 20.64 per cent the previous week, while that on the 364 – day bill jumped to 21.50 per cent from 20.70 per cent.
A trader at another commercial bank also said these yields were expected to make the shilling strengthen in the near term.
Meanwhile, Kenya’s Central Bank said it planned to mop up Kshs.9 billion in excess liquidity from the money markets.  The bank uses term auction deposits and repurchase agreements to absorb the liquidity, which makes it costly to hold onto dollars, which partly gives the shilling support.  The shilling has somewhat recovered from lows of nearly Kshs.107 to the dollar early last month.