Kenyan shilling weaker vs dollar; politics weighs

The Kenyan shilling weakened against a globally strong dollar on Friday, and traders said heightened political tension in the coalition government could put pressure on the local currency. The commercial banks quoted the shilling at 81.20/30 down from Thursday's close of 81.10/20. "The shilling seems to be tracking the dollar demand in the market, which has made some gains overnight," said Chris Muiga, a senior trader at Kenya Commercial Bank.
Traders said the shilling was also under pressure from a tense political environment brought about by President Mwai Kibaki's naming of nominees for the posts of Attorney General, Chief Justice and head of public prosecution.