Kenyan shilling rises against the dollar

10/08/2011 - Kenya property & investment news
Kenyan shilling rises against the dollar

The Kenyan shilling increased more than two per cent in intra-day trade against the dollar earlier today (Wednesday, August 10th), Reuters has reported.This comes after the country's central bank confirmed it would no longer be active in the reverse repurchase market.According to the bank, it is staying out of the reverse repo market in line with its monetary tightening policy, adding that the commercial banks enough time to "realign their liquidity requirements"."For as long as there was no clarity on that (reverse repos) people preferred to stay long on dollars. There was some unwinding of the risk clog, which has caused a bit of profit- taking and a correction," Duncan Kinuthia, head of trading at Commercial Bank of Africa, commented. Earlier this week, the Kenyan government announced that it is seeking investors to finance a $3 billion technology hub near Nairobi, the capital city.According to an official, the move is seen as central to transforming Kenya into a middle income economy within two decades.