Kenya shilling stays near three-year lows in wake of attack

NAIROBI: The Kenyan shilling stayed close to a three-year low on Wednesday after an Islamist attack in the northeast of the country the previous day spooked the market.

At 0735 GMT, commercial banks posted the shilling at 90.20/40, close to the 90.30/40 level it fell to on Tuesday, after al Shabaab militants from Somalia attacked a quarry in Mandera and killed 36 workers.

"It (the attack) does not provide comfort for the shilling," said a senior currency trader at a commercial bank.

Frequent attacks by the insurgents this year have scared tourists away from Kenya, reducing the supply of hard currencies they bring in, piling pressure on the shilling.

The latest attack, which followed another one in the area 10 days ago in which 28 people were killed, has cast a shadow over tourism during the Christmas period, which along with the summer months, is the peak period for the industry.