Bloomberg News

Kenya Shilling Weakens for First Day in Five on Dollar Demand

December 09, 2011

Dec. 9 (Bloomberg) -- Kenya’s shilling weakened for the first day in five on increased dollar demand by oil importers.

The currency of East Africa’s biggest economy declined as much as 0.4 percent and traded 0.1 percent lower at 89.40 per dollar at 1:24 p.m. in Nairobi, paring its advance this week to 0.5 percent.

“The shilling has weakened due to increased dollar demand by oil importers,” John Muli, a dealer at Nairobi-based African Banking Corp., said in a phone interview today.

Uganda’s currency fell for the first day in four on higher interbank dollar demand, weakening 0.3 percent to 2,468 per dollar. The shilling was headed for a weekly appreciation of 2.3 percent.

“The demand for the dollars came from the interbank market,” Faisal Bukenya, the head of currency trading at Barclays Bank of Uganda Ltd., said by phone from Kampala. “One of the banks was in the market seeking the dollar and the amount was substantial,” he said, without giving further details.

Tanzania’s money market is closed for a public holiday.

--With assistance from Fred Ojambo in Kampala. Editors: Peter Branton, Stephen Kirkland

To contact the reporter on this story: Johnstone Ole Turana in Nairobi at jturana@bloomberg.net David Malingha Doya in Dar es Salaam at dmalingha@bloomberg.net

To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net


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