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Huge sugar, maize and oil imports push down Kenya shilling

Xinhua, May 12, 2017 Adjust font size:

Kenya shilling sustained downward trend Friday as it lost 0.05 percent to close at a low of 103.4 against the U.S. dollar.

The decline was a continuation from Tuesday when it started to lose ground against the dollar.

The Central Bank of Kenya quoted the shilling Friday at 103.4, down from the previous day's 103.32.

Commercial banks, however, placed the value of the shilling at between 103.4 and 103.5, as traders said the shilling was under pressure from retail importers bringing in maize, sugar and oil.

Cytonn, a Nairobi-based investment firm, noted that importers are currently rushing to import oil before prices start an upward trend.

On the other hand, Kenya is facing acute shortage of sugar and maize pushing up prices due to low rainfall experienced in October and November 2016.

The government has ratified the importation of an additional 400,000 tonnes of sugar in the next three weeks to meet the demand.

Equally, the country is facing huge shortage of maize with the country receiving 350,000 tonnes from Mexico on Thursday, with more coming.

The imports are putting pressure on the shilling, making it decline against major world currencies like the dollar and the British Pound. Endit