NAIROBI: Kenya's biggest power producer Kenya Electricity Generating Company (KenGen) dragged shares lower for a second straight session, while the shilling was stable, traders said.
The Nairobi Securities Exchange's main NSE-20 Share Index fell 23.27 points or 0.45 percent to 5,174.41 points.
KenGen, which last week reported a 46 percent drop in after-tax earnings and slashed its dividend, closed 4.8 percent lower at 10.95 shillings a share.
On the foreign exchange market, the shilling closed trade at 89.35/45 to the dollar, from Friday's close of 89.40/50.
Traders said companies that usually seek dollars to meet end-of-month commitments were holding back to see if the central bank would again sell dollars to help the shilling.
"We probably expect to see demand coming in from tomorrow," said Nahashon Mungai, trader at Kenya Commercial Bank, said.
The shilling has been under pressure in part because of a sharp downturn in tourist arrivals, a major source of foreign currency, in the wake of Islamist attacks. In September, the central bank sold dollars when the shilling hit 89.45/55.
The central bank has previously said that it has enough foreign exchange reserves to cope with any shocks to the economy. Traders say the bank would only intervene to shore up the shilling if the local currency depreciates rapidly in speculative trade, rather than demand and supply fundamentals.
The central bank said it had mopped up a total 4.63 billion shillings ($52 million) in excess liquidity.
The action makes it costlier to hold long dollar positions and therefore helps bolster the shilling.
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