Economic Analysis - KES: Increasing Stability But Pressures Weighted To The Downside - 18 DEC 2017

BMI View: The Kenyan shilling is likely to see increased stability in the coming months given greater confidence in the country ' s political outlook. That said, this will not deter the shilling ' s long er -term trend of gradual depreciation .

Short-Term Outlook (three-to-six months)

We expect the Kenyan shilling to trade broadly sideways over the coming months, boosted by a more stable political outlook. Since the Supreme Court's decision to uphold the result of the re-run presidential election won by incumbent President Uhuru Kenyatta, investor sentiment has improved and we now believe that the currency is set to see increasing stability over our short-term outlook ( see ' KES: Political Risks Will Weigh On Shilling Stability ' , September 29).

Calmer Waters Ahead After Confirmation Of Election Results
Kenya - Exchange Rate, KES/USD (Daily)
Source: Bloomberg, BMI. Updated as of: December 11, 2017

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