Kenyan shilling strengthens to highest level since May 2016

The rise was attributed to hard currency inflows that caused banks to reduce their dollar holdings.

The shilling was quoted at 100.35 per dollar, up from Monday's close of 100.60.

"People are unwinding long dollar positions to fund their CRR (cash ratio reserve) positions on the money market side and also we are approaching due date for tax obligations which banks will be remitting to CBK," said a trader from a commercial bank.

The shilling, which has been on an upward trajectory since the start of 2018, mainly due to the reduction of political risk after last year's presidential election, which has boosted foreign investment inflows.

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