Kenya’s shilling depreciated for the first day in three. The currency of East Africa’s biggest economy weakened as much as 0.5 percent to 86.58 per dollar and traded 0.3 percent lower at 86.40 at 1:35 p.m. in Nairobi. “The shilling has depreciated due to increased dollar demand largely by the oil importers,� Duncan Kinuthia, a dealer at Nairobi-based Commercial Bank of Africa Ltd., said in a phone interview today. The Central Bank of Kenya accepted 450 million shillings ($5.2 million) of bids for the 1 billion shillings of repurchase agreements it offered at 17.833 percent, a bank official, who declined be identified citing the bank’s policy, said in by phone today from Nairobi, the capital. Tanzania’s shilling appreciated for the first day in five against the dollar as the central bank sold dollars in the market. The currency of the second largest East African economy climbed 0.8 percent to 1,581.85 and was trading 0.1 percent higher at 1,593 at 1:06 p.m. in the capital Dar es Salaam. Uganda’s currency strengthened for the second day on increased dollar inflows from coffee sales. The currency of the third largest East African economy gained as much as 0.7 percent to 2,392.50 and was trading 0.2 percent higher at 2,405 at 1:34 p.m. in Kampala the capital. “The shilling is gaining on the back good dollar inflows from commodity exports especially coffee and tight money market following the payment of mid-month Value Added Tax by businesses,� Taib Lubega, a currency trader at Stanbic Bank Uganda Ltd., said by phone from Kampala. To contact the reporter on this story: Johnstone Ole Turana in Nairobi at jturana@bloomberg.net To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net

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