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imageNAIROBI: The Kenyan shilling strengthened against the dollar on Tuesday and traders said investors were buying local currency ready for the auction of a government infrastructure bond on Wednesday.

At 0815 GMT, commercial banks posted the shilling at 88.90/89.00, stronger than Friday's close of 89.10/89.20. Monday was a public holiday and markets were closed.

"There's an expectation that we could see some decent flows coming for the infrastructure bond that's being auctioned," said Duncan Kinuthia, head of trading at Commericial Bank of Africa.

Kenya will auction a 12-year infrastructure bond worth 15 billion shillings ($170 million) on Oct. 22. The proceeds will be used to fund transport, energy and water projects, the central bank said.

Copyright Reuters, 2014

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