Kenya’s Shilling Gains on Higher Dollar Inflows From Tea Sales

Kenya’s shilling strengthened for a second day on increased dollar inflows from the country’s tea producers.

The currency of East Africa’s biggest economy appreciated as much as 0.8 percent to 85.20 per dollar and traded 0.2 percent higher at 85.70 as of 2:03 p.m. in Nairobi, the capital.

“The shilling has gained on increased dollar inflows from the tea sale,” John Muli a dealer at Nairobi-based African Banking Corp., said in a phone interview today.

African tea prices declined to an average of $2.62 per kilogram from the previous week’s average of $2.74 at an auction in the Kenyan port city of Mombasa, Tea Brokers East Africa Ltd. said in an e-mailed report yesterday.

Tanzania’s shilling weakened for a third day on increased dollar demand from oil importers. The currency of the second-largest East African economy depreciated 0.6 percent to 1,605.70 per dollar.

“The shilling has weakened due to increased demand for dollars by oil importers and manufacturers seeking to import raw materials,” Yonoh Mtengule, chief economist at National Bank of Commerce Ltd., ABSA Group’s Tanzanian unit, said today by phone from Dar es Salaam, the country’s commercial Capital.

The Ugandan shilling strengthened for a fifth day, the longest streak since Dec 2., appreciating 0.5 percent to 2,365 at 1:25 p.m. in the capital Kampala.

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