Kenyan shilling

  (Reuters)

The Kenyan shilling held steady against the dollar on Thursday with inflows from the tourism and agriculture sectors expected to strengthen the local currency in days ahead.

Commercial banks quoted the shilling at 83.95/84.15 per dollar, barely changed from Wednesday's close of 83.90/84.10.
"From the flow side, demand (for dollars) has reduced and as we head to the tourism season peak we are expecting some good inflows," said Peter Mutuku, a senior trader at Bank of Africa.

"The tea and coffee sector are also looking good in coming weeks."
The peak period for Kenyan tourism, which earned a record $1.2 billion in 2011, stretches between July and August, mainly due to the influx of tourists who arrive to observe the wildebeests migration on the Mara river.

The sector is forecast to perform less well this year as Europe's economies struggle to recover, cutting visitor numbers, and because of security fears.

However, traders said they expect the shilling gains to be curtailed by increased liquidity due to government debt redemptions and falling rates in the money market, making it cheaper for banks to hold long greenback positions.