By KEVIN MWANZAMore by this AuthorThe shilling could be headed for tough times with the political crisis deepening after the Supreme Court failed to hear a case on a postponement of a presidential re-run that has seriously hit the economy. The shilling fell to a two-month low of 103.80/90 on Tuesday, defying the central bank’s repeated efforts to stabilise it by selling dollars in the market and mopping up liquidity using repurchase agreements. It all depends on the political development.”Companies usually hold their cash in dollars ahead of elections to cushion themselves against unexpected eventualities. Kenya’s Supreme Court ruled on September 1 that the August 8 Presidential vote had been marred with irregularities that made it impossible to determine its integrity. The shilling, which has depreciated 1.4 per cent so far this year, has been fairly stable compared to commodity export-oriented African currencies such as Nigeria.

Source: Daily Nation October 25, 2017 19:52 UTC