Traders said the shilling could firm further aided by dollar inflows from the farm sector and diaspora remittances coupled with continued tightening of liquidity by the central bank.

At 0747 GMT, commercial banks quoted the shilling at 85.70/90 against the dollar, stronger than Monday's close of 86.00/30.

"The shilling is still strengthening after the ICC confirmations, which some guys had thought would lead to chaos and went long on dollars and are now selling," said John Muli, a trader at African Banking Corporation.

"There are also some inflows from the diaspora clients and agriculture sector."

Charts showed the shilling was likely to trade in a range of 85.00-86.00 this week, with a break past 85 ushering in a target of 83.00 per dollar, traders said.

Traders said the market was still watching for any sign of public or political reaction after the ICC confirmed two top presidential contenders, Uhuru Kenyatta and William Ruto will be among those tried.

Kenyatta, the country's richest man and finance minister, has ramped up his presidential election campaign this month, and is running a close second to Prime Minister Raila Odinga in the polls. The prosecution of Kenyatta, who has yet to comment on Monday's ruling, raises worries of a new round of political volatility.