Kenyan shilling seen easing on political uncertainty

Kenya shilling coins and notes are pictured inside a cashier's booth at a forex exchange bureau in Kenya's capital Nairobi, April 20, 2016. REUTERS/Thomas Mukoya

NAIROBI (Reuters) – The Kenyan shilling was steady against the dollar on Wednesday but was perceived depreciating due to growing political uncertainty with direct intervention from the central bank likely to smooth out volatility, traders said.

Kenya shilling coins and notes are pictured inside a cashier’s booth at a forex exchange bureau in Kenya’s capital Nairobi, April 20, 2016. REUTERS/Thomas Mukoya

At 0823 GMT, commercial banks quoted the shilling at 103.25/45 the same as Tuesday’s close.

“Because of political uncertainty, strategies have changed and the shilling looks more vulnerable,” said a trader from a commercial bank.

Kenyan opposition candidate Raila Odinga pulled out from the Oct. 26 election re-run while a Jubilee majority parliament passed a controversial election law amendment earlier in today’s session.

(Reporting by John Ndiso)

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Mareeg senior news editor since 2001 and he can be reached at news@mareeg.com