Shilling firms, high interest rates draw offshore investors

Kenya’s shilling strengthened on Friday, helped by dollar inflows from offshore investors interested in buying government securities.

At 0639 GMT, commercial banks quoted the shilling at 105.10/20 to the dollar, compared with Thursday’s close of 105.55/65. “It’s strengthened on the interest rates. The interbank is very tight. I think the Treasury bill is beginning to attract offshore interest now, so the market is seeing some flows,” said a senior trader at one commercial bank. “It’s basically the offshore (investors) chasing the Treasury bills and such.”