Markets

Kenyan shilling gains ground, helped by lacklustre dollar demand

The government has also announced a series of measures including tax cuts to cushion the economy from coronavirus.
Published March 27, 2020
  • The government has also announced a series of measures including tax cuts to cushion the economy from coronavirus.
  • Kenya, which has 28 confirmed coronavirus cases and one death, will start enforcing a 7 p.m. to 5 a.m. curfew daily starting on Friday.

NAIROBI: The Kenyan shilling strengthened on Friday due to lack of dollar demand from merchandise importers and manufacturers, traders said.

At 0849 GMT, commercial banks quoted the shilling at 104.50/70 per dollar, compared with 105.00/20 at Thursday's close.

"This is just market correcting itself... those who wanted dollars have fulfilled their obligations," said a senior trader from one commercial bank.

Economic activity has slowed due to concerns over the spread of coronavirus and measures the government as taken to contain it like banning public gatherings, asking people to stay at home and suspending international passenger flights.

Tourism and horticulture, key foreign exchange earners, are already feeling the pinch from shutdowns resulting from the virus, as are factories that are facing difficulty importing raw materials.

The government has also announced a series of measures including tax cuts to cushion the economy from coronavirus.

Kenya, which has 28 confirmed coronavirus cases and one death, will start enforcing a 7 p.m. to 5 a.m. curfew daily starting on Friday.

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