Kenya Shilling Heads for 3-Month as Oil Companies Seek Dollars

Kenya’s shilling headed for a three-month low against the dollar on demand for the U.S. currency from oil companies settling month-end obligations.

The currency of East Africa’s largest economy declined 0.1 percent to 84.97 a dollar by 12:02 p.m. in Nairobi, heading for its weakest level on a closing basis since June 13, according to data compiled by Bloomberg. Almost all of the oil and gas products consumed in Kenya are imported.

“We are seeing dollar demand from the energy sector, mainly from oil marketers as we reach the end of the month,” Francis Macharia, a currency dealer with Equity Bank Ltd. based in Nairobi, said by phone.

Uganda’s shilling fell 0.1 percent to 2,522.50 a dollar, heading for its lowest level on a closing basis in a month. The Tanzanian currency traded unchanged for a second consecutive session at 1,577 a dollar.

To contact the reporter on this story: Sarah McGregor in Nairobi at smcgregor5@bloomberg.net

To contact the editor responsible for this story: Nasreen Seria at nseria@bloomberg.net

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