Kenyan shilling are expected to firm next week on the back of export and investor inflows while the Tanzanian shilling is expected to remain under pressure.

The Kenyan shilling could gain ground against the dollar in the coming week due to inflows from horticulture earnings subduing thin demand from manufacturers and oil importers.

Commercial banks quoted the shilling at 100.70/90 per dollar on Thursday, compared with 101.80/102.00 at last Thursday’s close.

“Dollars in circulation from offshore investors and horticulture exporters are meeting the usual demand,” said a commercial bank trader.

The Tanzanian shilling could remain under pressure in the days ahead, weighed down by demand for dollars from importers amid subdued inflows of the U.S. currency. 

Commercial banks quoted the shilling at 2,255/2,260 to the dollar on Thursday, weaker than 2,249/2,254 a week ago.

“The shilling will likely continue to be under pressure next week as we expect demand for dollars from various importers to continue being relatively high,” said a trader at CRDB Bank.

The Ugandan shilling is seen trading in a broadly stable range in the coming days helped by soft demand amid thin liquidity conditions.

At 0839 GMT commercial banks quoted the shilling at 3,633/3,643, weaker than last Thursday’s close of 3,625/3,635.

A trader at a leading commercial bank said scarcity of local currency liquidity would limit the building of positions by traders.

On Thursday the central bank removed an undisclosed amount of shillings from the money markets via a one-week repurchase agreement (repo) and two deposit auctions of 29-day and 56-day tenors.