Shilling holds steady against the dollar

The Kenyan shilling was stable against the dollar on Wednesday supported by inflows from Kenyans living abroad and foreign investors buying an infrastructure bond.

"There is subdued demand for dollars and there are seasonal flows for the festive season and into the infrastructure bond on sale," said a trader at a commercial bank.

"It will be stronger in the short-term."

Kenyans living abroad usually return for the holidays, carrying hard currency.

The central bank is scheduled to auction an infrastructure bond worth up to 30 billion shillings on Wednesday. The bond is popular with investors because it is exempt from taxes.

After plunging close to an all-time low in September at 106.80 to the dollar, the shilling has traded in a band of roughly 102.00 to 102.50 since early November.