Kenya shilling steadies on government securities inflows

The Kenya shilling steadied against the U.S. dollar on Tuesday, gaining 0.05 percent to close at 103.2, Central Bank of Kenya (CBK) data showed.

The local unit has been gaining ground against the dollar since last week Friday, with analysts attributing the current rise to inflows from investors buying government securities.

Commercial banks, however, quoted the local unit at a stronger position of 103.15, an indication that the dollar inflows would strengthen the currency further.

On Monday, the shilling gained against the dollar by 0.05 percent to close the day at 103.3.

More dollar inflows are expected in the course of this week as the apex bank Tuesday announced the tap sale of two ten-year fixed bonds worth 69 million dollars.

Last week, Kenya raised 318 million dollars from the two ten-year bonds worth 291 million dollars it floated this month to cover end of fiscal year deficit.

The bonds were massively oversubscribed, raising 479 million dollars with the CBK, however, rejecting 161 million of investors' bids.

Kenya's forex reserve level currently stands at 8 billion dollars or equivalent to 5.3 months import cover from 7 billion dollars or 4.6 months import cover recorded on March 17, largely as a result of the receipt of the 83 million dollars syndicated loan. Endit