NAIROBI: Kenya’s shilling slipped on Friday due to dollar demand from the manufacturing sector, traders said, adding that a credit rating review by S&P Global later this month could be a big driver in the weeks ahead.

At 0805 GMT, commercial banks quoted the shilling at 129.50/130.50 to the US dollar, compared with Thursday’s closing rate of 129.00/130.00.

S&P Global is scheduled to review Kenya’s sovereign rating on Aug. 23.

Kenyan shilling firms to new 1-year high

It currently has the East African country’s long-term foreign and local currency ratings in “junk” status, at ‘B’ with a negative outlook.

Last month Moody’s downgraded Kenya’s local- and foreign-currency long-term ratings deeper into junk, to ‘Caa1’ from ‘B3’, citing a diminished capacity to implement fiscal consolidation after President William Ruto withdrew planned tax hikes in response to mass protests.