The shilling is expected to continue losing ground against the dollar by the end of the year according to economists at Commercial Bank of Africa (CBA).
The latest update by the lender’s researchers says the shilling will continue to depreciate to cap the close of the year at Sh103 but the Central Bank of Kenya (CBK) is expected to step in and slow the fall.
“The shilling lost 0.5 per cent to the US dollar to trade at 102.50 levels in November,” they said.
“Persistent pressure in spite of the squeeze in liquidity could suggest genuine underlying demand and potentially push the unit closer to 103.00 by year-end.”