The Kenyan shilling has breached the 95-point mark after being on a weakening trend against the US dollar.
The shilling was Tuesday trading at its lowest level 95.15, in three years.
Thich could lead to high prices for imports, hence affect those of inputs and consequently the final costing of products.
According to National Bank head of Trading Chris Muigai, the shilling has come under pressure from demand by corporates and importers of capital goods for various infrastructure projects ongoing in the country, the Daily Nation reports.
The Central Bank of Kenya’s Monetary Policy Committee is expected to meet today to set the benchmark lending rate that has been at 8.5 per cent for about two years.
Analysts have warned of further weakening of the local currency due to the great demand for dollars against lower inflows which they attribute to the slump in tourism caused by terrorist attacks.
