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This research report was prepared by the Research Department of Old Mutual Securities Limited. Old Mutual Securities Limited is a securities trading company licensed by the Capital Markets Authority (Kenya) for the purpose of facilitating trade on the Nairobi Securities Exchange.

Here are our views on the news making headlines today for Kenya:
Kenya's central bank intervention lifts shilling, shares fall. Kenya's shilling strengthened on Tuesday after the central bank sold dollars to banks, while stocks fell on negative sentiment after a deadly attack by terrorists in a town near the frontier with Somalia.

Our View: We believe that the Kenya shilling will weaken in the coming days as a result of declining tourism sector due to insecurity. Other contributing factors to this would be the widening current account deficit and low output in the local manufacturing sector. However, we still believe the CBK will be active to keep the currency at the sentinel levels in addition to the increased diaspora remittances where 12 month average flow maintained an upward trend during the year peaking at to USD 120.4 million by February 2015 and low oil prices...


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