Kenyan shilling trades stable, seen in tight range

NAIROBI: The Kenyan shilling was little changed on Monday and expected to trade in a narrow band in coming days, underpinned by waning demand for dollars.

At 0830 GMT, commercial banks posted the shilling at 86.45/65 against the dollar, compared with last week's close of 86.40/60.

Mid-month tax payments by firms and sluggish appetite for dollars from importers ahead of the holidays were likely to keep the shilling well supported in a band of 86.20-86.70, traders said.

"The reduced corporate activities are also expected to support the shilling," said a senior trader with a leading commercial bank.

The tax payments are likely to curb liquidity in the money markets, sending short-term interest rates higher.