Kenya’s Shilling Halts Decline as Central Bank Sells Dollars

Kenya’s shilling gained against the dollar, halting three days of declines after the Central Bank of Kenya sold the U.S. currency to lenders, according to Commercial Bank of Africa Ltd.

The currency of East Africa’s biggest economy appreciated less than 0.1 percent against to 87.35 a dollar by 6:57 p.m. in Nairobi, the capital.

The Central Bank of Kenya sold dollars for a second day, Duncan Kinuthia, head of trading at Commercial Bank of Africa, said by phone from Nairobi.

“The bank is keen to defend the shilling against a rapid decline,” he said.

An official in the institution’s foreign-exchange department declined to comment in line with policy when contacted by phone today.

The bank sold a total of 22 billion shillings ($252 million) of 5-year and 20-year Treasury bonds at an auction today, it said in an e-mailed statement. It offered 15 billion shillings and received bids for 32 billion shillings. The bank accepted 998 million shillings of 6-month Treasury bills, it said.

Uganda’s shilling gained 0.1 percent to 2,677 a dollar, strengthening for the first time in five days. Tanzania’s shilling appreciated 0.2 percent against the dollar to 1,607.

To contact the reporter on this story: Johnstone Ole Turana in Nairobi at jturana@bloomberg.net

To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.