Kenyan shilling continues to weaken

The Kenyan shilling on Monday continued to lose ground against the dollar after it tumbled to a new low of 106 against the green buck.The shilling has been edging closer to its all-time low of about 107 to the dollar, set in October 2011.

The local currency has already lost 16 percent against the dollar in 2015, coming under pressure from Kenya’s high current account deficit and poor tourism inflows after attacks by Somalia’s al-Shabaab insurgents.

Kenya’s central bank has in the past few months periodically intervened in the market to support the currency by selling dollars.

It also regularly mops up excess liquidity.