Kenyan shilling under pressure from dollar demand

NAIROBI: The Kenyan shilling eased on Thursday, undermined by demand for dollars from importers in the energy and manufacturing sectors.

At 0802 GMT, commercial banks quoted the shilling at 86.55/65 to the dollar, compared with Wednesday's close of 86.40/50.

"When we broke 86.50, the effect of that is now people panicking and wanting to cover any dollar obligations that they have," said Nahashon Mungai, a trader at KCB Bank.

Importers normally acquire dollars at the end of the month, as they stock up for the following month or settle outstanding payments to suppliers.