NAIROBI (Reuters) - The Kenyan shilling held steady against the dollar on Wednesday but traders said it was likely face pressure due to the traditional end-month importers' demand for the U.S. currency and rising prospects of a huge rate cut. At 0728 GMT, commercial banks posted the shilling at 84.10/20 per dollar, barely changed from Tuesday's close of 84.00/20. "We could see the shilling touch the 84.30 level by the end of this week," said Peter Mutuku, head of corporate trading at Bank of Africa, citing increased demand for dollars from energy sector importers. Trader said inflation data for August, expected later this week, will provide clarity on the size of rate cut the market could expect from a rate-setting meeting scheduled for September5, which in turn could weaken the currency if it is too big. Year-on-year inflation is expected to drop to 6.75 percent in August, thanks to good food harvests and lower petrol prices, a Reuters poll of 11 analysts showed. Last month, the central bank cut its policy rate by 150 basis points to 16.5 percent, saying the inflation-busting measures it put in place late last year were working, amid stability in the local currency for most of this year.

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