Kenyan shilling eases on dollar demand from energy sector

NAIROBI (Reuters) - The Kenyan shilling inched lower against the dollar on Friday after dollar demand from the energy sector and lack of hard currency inflows weighed on the local unit. At 0800 GMT, commercial banks posted the shilling at 90.30/40, slightly weaker on Thursday's close of 90.25/35 to the dollar. Joshua Anene, trader at Commercial Bank of Africa, said demand for dollars from the energy and mining sectors was putting pressure on the shilling, while "on the other side, inflows have dried out as tourism is on its knees." A spate of bombings and gun attacks by the Somalia militant group al Shabaab has hurt Kenya's tourism industry, one of the main sources of hard currency for east Africa's biggest economy. The local currency has weakened 4.6 percent against the dollar this year despite frequent interventions by the central bank to prop up the shilling, including dollar sales. Traders said they expected the central bank would sell dollars to support the currency if the currency weakens towards the 90.50 level, after the bank sold dollars on Wednesday helping to lift the shilling from its intraday low of 90.40/50.