NAIROBI: The Kenyan shilling was little changed on Wednesday, and traders said the currency should hold firm in days ahead in the absence of demand from importers for dollars as the year comes to an end.
The shilling traded at 85.80/86.00 to the dollar at 0712 GMT, largely in line with Tuesday's close of 85.90/86.00.
"Most corporates are closing their books for the year so demand (for dollars) will be quiet," said Chris Rwengo, head of trading at Standard Chartered Bank.
The shilling has been fairly stable this year supported by the tight rein the central bank has kept on banking sector liquidity through its money market operations.
Traders said the currency may be vulnerable to political risk next year as the country heads towards the first general election since a disputed presidential vote in late 2007 sparked nationwide violence.
On Tuesday, the country's Prime Minister said he will join forces with the country's vice president in next year's polls, to challenge another alliance headed by two senior politicians facing charges of crimes against humanity.
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