The shilling opened trading at an indicative average of 103.74 units to the dollar.
This is the highest levels since July 3 when it exchanged at 103.72 — and marginally appreciated from 103.76 on Tuesday.
The shilling continued holding ground against the dollar on Wednesday as dealers expected it to firm further, citing low demand for the greenback and inflows from NGOs.
The local unit opened trading at an indicative average of 103.74 units to the dollar — the highest levels since July 3 when it exchanged at 103.72 — and marginally appreciated from 103.76 on Tuesday.
The stability of the shilling is a stamp of confidence by investors in the political landscape following re-election of President Uhuru Kenyatta for a second and final five-year term last week.
There had been no panic buys of the dollar by companies before and after election whose results the Opposition National Super Alliance dispute.
“I don’t see renewed demand exerting pressure on the currency and the reason the demand is so soft is also a function of drought and interest cap (which have slowed private sector investments),” Stanbic regional economist Jibran Qureishi said in an earlier interview.
The shilling has been relatively stable this year, depreciating by 1.22 per cent through yesterday having exchanged at 102.49 on the last trading day last year.
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